Rates Lowest since WWII.

Mortgage rates had tested the 3.75% mark 4 previous times but just could not breach below this mark until today. For the first time since WWII, 30 year fixed rate mortgages reached the 3.625% mark and there are signs that 3.50% could be the next milestone.

Rates moved lower this morning on employment news that showed that job creation may be once again slowing. Non-farm payrolls increased by 115,000 in April which is okay and was somewhat expected but it is a far cry from the 200,000+ number shown in February. Despite the unemployment rate dropping to 8.1%, its lowest level since 2009, Wall Street is having fears that the “recovery” may be slowing down once again. The 10 year treasury once again fell below the 1.90% mark and is now standing at 1.87% as of this report. If the 10 year can move below the 1.75% mark, look for 30 year fixed rates to land around 3.5%.

Purchase activity in the metro Atlanta Area has picked up quite a bit over the past two weeks with the hot purchase range being in the $150K to $250K range. Despite the recent rise in the FHA Mortgage Insurance Premium and up front Mortgage Insurance, FHA continues to be the hot product.

Worth Taking A Look AT….FNMA 7 year ARM is currently running in the 2.625% range…If you know you won’t be in the home for 7 years, this is an option to consider.