Just how low can fixed mortgage rates get?

The only thing more exciting than buying a new home is knowing that you were given a super low mortgage rate, and the only thing that can add to that excitement is knowing that they may be coming down even further.

Bond yields are what fixed mortgage rates are determined by, and after seeing some large increases to the yields throughout the month of August and early September, we saw fixed mortgage rates rise with some lenders.   That trend has reversed over the past few weeks, putting downward pressure on mortgage rates.    

While this trend has already encouraged some mortgage lenders to drop their rates, we can expect to see some further drops if the trend continues.

Right now, you can still get a 5 year fixed mortgage as low as 2.99%. Possibly even lower if you know the right people (wink wink), but I am confident we will start seeing some rates even lower than this over the next week to two weeks. Even at 2.99% for a 5 year fixed can be placed into the 'ridiculous' category given just how low it is by historical standards. The lowest I have been able to offer in the past was 2.79%. Let's see if the new trend can bring us back into that ballpark.