Lafayette Mortgage Interest Rates Stage Surprise Turnabout

Lafayette Mortgage Interest Rates Stage Surprise Turnabout

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It usually takes at least some digging to come up with relevant news for Lafayette real

estate watchers. Last week provided an exception.


The boldest headlines, cable TV info crawls, and email announcements dealt with the

unexpected move in mortgage interest rates. The welcome news for Lafayette home sellers and

prospective buyers came with Freddie Mac’s midweek announcement that the benchmark 30-

year mortgage rate had fallen to 3.97% “for the first time since November.”


Beneath the “Mortgage Rates Tumble Below 4 Percent” headline, the quasi-government

site elaborated on the importance of the move. The drop had pierced “the psychologically

important 4 percent level.” Freddie doesn’t usually delve into psychology, but in this case, it was

well warranted. Locally, Lafayette mortgage interest rates had been expected to trace a slow but

steady rise, paralleling the Federal Reserve’s announced intention to nudge bank borrowing rates

upward. Last month, after the Fed did exactly that, Lafayette mortgage interest rates behaved as

expected, tiptoeing upward. Image title


Of course, since higher lending rates mean buyers experience higher monthly payments,

that could presage less real estate activity. But since the Fed was expected to continue with two

or three more Fed funds rate hikes in 2017, the opposite had been expected. More likely,

prospective homebuyers would appreciate that the 4+% rates were still lower than average—and

want to take advantage of them before they moved higher.


And in fact, by Friday the NAR’s REALTOR® website could confirm that U.S. “Existing-

Home Sales Jumped 4.4% in March.” The spring selling season was off to a robust start,

chalking up the strongest month of sales in a decade. That was all well and fine, but how to

explain the drop in mortgage interest rates?


Some informed opinion had it that world financial markets were queasy about an election

in France, so capital was seeking safety (real estate lending fits the bill). When lenders have lots

of investors sending cash into their coffers, rates get competitive. Others saw signs that the Fed

might once again fail to follow through on future rate hike promises.


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As for the most important takeaway—namely, what should local buyers and sellers expect

for the immediate future of mortgage interest rates in Lafayette, prognosticators were saying

things like, “it’s important not to over-interpret” the latest news. Translation: “It’s anyone’s

guess.”


One thing that is certain: we’re again seeing absolutely terrific Lafayette mortgage interest

rates! For potential buyers and sellers who choose to take advantage of that window, the way to

get started is as easy as giving me a call!








Ted M. Daigle

Move Ahead, with Ted!

337-945-6763

www.337homesearch.com

www.337homevalue.com




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Dated: May 3rd 2017
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