Tag Archives: interest rates

Real Estate

Lowest Mortgage Rates Ever

There is at least one bright spot for home buyers, sellers, and owners amid the economic mayhem brought on by the novel coronavirus. Mortgage interest rates have fallen to a new record low, a boon to homeowners who may want to refinance and save money, and buyers (if anyone feels like buying a home right now).

Rates have been on a wild ride since this crisis began, and the average for a 30-year fixed-rate hit 3.23% for the week ending April 30, according to Freddie Mac. That’s the lowest it’s been since Freddie Mac began tracking rates in 1971. The average rate was 4.14% a year ago.

The drop may not seem all that substantial, as it’s not even a full percentage point. But the lower rate will save borrowers $132 a month for a $320,000 home (the national median home price) if they made a 20% down payment. That’s $1,584 a year—which adds up over the life of that 30-year loan.

Source: Mortgage Rates Hit New All-Time Lows—and They May Fall More | realtor.com®

Real Estate

Mortgage Rates Near Record Lows

The 30-year fixed-rate mortgage continued to hover near historical lows this week, lowering borrowing costs for home buyers and refinancing homeowners.

Freddie Mac reported that the 30-year fixed-rate mortgage averaged 3.60% this week, unchanged from last week’s average. “The sound and fury of the financial markets continue to warn of an impending recession; however, the silver lining is mortgage demand reached a three-year high this week,” says Sam Khater, Freddie Mac’s chief economist.

“The decline in mortgage rates over the last month is causing a spike in refinancing activity—as homeowners currently have $2 trillion in conventional mortgage loans that are in the money—which will help support consumer balance sheets and increase household cash flow. On top of that, purchase demand is up 7% from a year ago.”

Source: Mortgage Rates Hover Near Record Lows | Realtor Magazine