- Average Rates Break the 4% Mark For 1st Time
Although it might sound like a broken record mortgage rates have reached another all time low. Today Freddie Mac announced that the average rate for a 30 year fixed mortgage fell below 4% for the first time ever to an average of 3.94%.
Rates on a 15 year fixed loan, which is a popular option for homeowners who are refinancing, fell to an average of 3.26%, which is also a record.
Mortgage rates have reached lows that were last seen in the early 1950’s when the average 30 fixed rate dipped to 4.08% for a few months.
This offers yet another opportunity for buyers to capitalize on historically low rates. Low rates coupled with declining prices along with abundant home inventory offer buyers market conditions unknown in the past – the confluence of low rates and declining prices.
The establishment of recent lows in the recent past have not created any significant uptick in buyer demand, and real estate pundits and economists are skeptical about the efffect that lower rates have on the sluggish housing market. Rates are not seen as an impediment to buyers, but the sluggish economy, uncertainty about jobs, and meger pay raises are deterring many prospective buyers.
