Mortgage rates have dropped to the lowest levels since before the 2016 presidential election.
The 30-year fixed-rate mortgage averaged 3.45% during the week ending Feb. 6. This was the third consecutive week in which mortgage rates dropped. The last time the 30-year fixed-rate mortgage was at or below this level was in October 2016, when it averaged 3.42%.
The 15-year fixed-rate mortgage also fell three basis points to 2.97%, according to Freddie Mac. This was the first time since 2016 the average rate for the 15-year fixed home loan fell below 3%.
As rates fell for the third consecutive week, markets staged a rebound with increases in manufacturing and service sector activity. The combination of very low mortgage rates, a strong economy and more positive financial market sentiment all point to home purchase demand continuing to rise over the next few months.”
That rising demand is expected to speed the start of the spring home-buying season, which is generally the most popular time of year to purchase a home for most of the country. In the fourth quarter of 2019, housing affordability improved across all income levels nationwide. Out of the 100 largest metropolitan areas nationwide, 87 saw affordability improvements in the fourth quarter.
Barring future global economic events or changes in Federal Reserve policy, interest rates are expected to stabilize in 2020.
About the Author
Ryan Christensen
Responsive, Responsible and Resourceful - How Real Estate Should Be. This is the foundation of our continued success: responsive service, providing accurate and timely information, and demystifying the process. 100% of my business is referral based because I listen to my clients' needs and exceed their expectations. As a full-time real estate broker, I am the best advocate for both my buyers and sellers. I am always available, regardless of the time of day.
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I am both a licensed Real Estate and Mortgage Broker. Others choose to concentrate on one or the other. I provide a higher level of service and expertise than those who do not obtain this dual skill set, which differentiates me from other service providers. My decisions and advice are based solely on what is in the best interest of my clients. I use Real Estate Sales as a tool to make sure my clients get the home that meets or exceeds their needs. As a Mortgage Broker, I search for the best loans so I can offer lower rates and pricing than my financing competition. This certainly IS in the client's best interest.