Mortgage rates spiked pretty aggressively over the past few weeks, but this week we’ve seen some significant improvement due to the ongoing financial mess over in Europe and uncertainty over the sequester issue in Congress.
According to the Freddie Mac Primary Mortgage Market Survey, average 30-year fixed rates were 3.34% with 0.7 points and closing costs the week of January 3, 2013. Last week, the average rate was 3.56% with 0.8 points and closing costs.
Though mortgage rates don’t move in lockstep with the 10-year Treasury Note, they do tend to roughly follow it. When the 10-year yield drops, mortgage rates tend to drop as well. Check out the chart below from MarketWatch, which shows the movement of the 10-year over the last five days.
If you’ve been on the fence about getting your mortgage refinanced, this week may be a very good time to pull the trigger. We’re seeing better rates this week than we’ve seen in a while and now may be your ideal time to jump into the market.