If you hadn’t noticed, Freddie Mac reported yesterday that interest rates for residential properties fell to their lowest levels of 2016 and matched a low hit in February of 2015. According to Freddie, the average 30-year fixed rate fell by a whoppingRates Fall to Lowest Levels 12 basis points from 3.71% to 3.59% for a primary residence and 3.96% to 3.84% for investor properties. Yields on the 10-year Treasury also took a tumble by 10 bps. These lower rates will trigger more refinance activity should they hold at these lower levels. It was at this time last year that rates for mortgage bonds, bills and Treasuries began a steady march upward until the Fed acted on its first rate increase in years back in December of 2015.

Simultaneously the job market has still been on a steady roll as well and the unemployment report for March showed yet another 200,000+ increase in new, private payroll jobs. Lower rates and steady employment should bode well for the housing market through the rest of the year and quite possibly into 2017. On the real estate investing front however, lower housing inventory continues to be a steady part of the landscape as rental rates rise in most parts of the country.

It’s interesting to note the dynamics between stocks and bonds seem not to be in lock-step as one might think and now the key ingredient seems to be oil prices as there are signals that oil production will be more evenly managed with production decreasing due to the oil glut. The price of oil more than anything else seems to be having more of an effect on stocks and therefore on mortgage bonds and Treasuries. While the Fed appears to have more doves than hawks at present, even if the Fed did raise the Federal Funds rate one more time this year it might very well have little to no effect on financing costs for real estate.