Selling Investment Properties – Mortgage Rates Hit Yearly Low Point

Gloom and doom on the stock market sent mortgage rates to new lows for the year this past week. As Treasury bond yields fell, so did mortgage interest rates.  This is a huge benefit to buyers when investors are selling investment properties.

Freddie Mac’s Primary Mortgage Market Survey lists 30 year fixed rate loans at an average of 4.39%; 15 year fixed rate mortgages at 3.54%; 5 year ARMs at 3.18% and 1 year ARMs at 3.02%.  The weekly decrease was .16% for the 30 year fixed rate mortgage, .12% for the 15 year fixed rate loan, and .07% for the 5 year ARM.  Only the 1 year ARM showed a slight increase of .07%.

Freddie Mac chief economist and VP, Frank Nothaft, noted that the economy grew below expectation in the 2^nd quarter at 1.3% and the first quarter growth was cut to less than a quarter of what it was originally projected to be.  The first half of 2011 saw the worst economic showing since the beginning of the economic recovery in June 2009.  Consumer spending fell .2% in June for the first time since September 2009.

Bankrate overnight averages are 4.31% for 30 year fixed rate loans.  Last week they were 4.51%.  The 15 year rates are at 3.48%, while last week they were at 3.64%. The 5 year ARM rate stands at 2.86%, while a week ago it was at 2.98%.  These are attractive factors to make buyers aware of when you are selling investment properties!