A Second Chance at Low Mortgage Rates in 2016
When the Federal Reserve raised interest rates a month ago, many people expected mortgage rates to be affected as well, and homebuyers may have felt they’d missed out on the historical lows mortgage rates had fallen to by that point.
As it turns out, prospective homebuyers still have time to take advantage of low rates. In fact, due to recent market volatility, average mortgage rates on 30-year mortgages have dropped to a 3-month low.
The slowdown in global markets, like China’s, and lowering oil prices are also to thank for lower than expected mortgage rates in 2016, according to Kathy Orton for The Washington Post. As Orton points out, the 30-year mortgage rate was 3.63% a year ago, 3.92% a week ago, and now it is down to 3.81%. 15-year and adjustable rate mortgages are down too.
Consumers aren’t waiting around to see how long this second chance at low rates is going to last. Mortgage applications increased in volume 9% from last week and refinance applications are up 19%.
While investors are most likely not celebrating the turmoil in the markets, the consistently lower and lowering mortgage rates provides the perfect opportunity for homebuyers who weren’t quite ready to buy last year, and who thought they had missed their chance at historically low rates.
To see today’s mortgage rates and to talk to a mortgage lending expert, visit lonestarfinancing.com.