In recent weeks, Fannie Mae and Freddie Mac agreed to the return of mortgages with as little as a 3% down payment
The average rate for a 30-year fixed-rate loan now stands at 3.8%, a rate not seen since May 2013, according to Freddie Mac.
Interest rates have been falling alongside 10-year Treasury yields, which have also fallen to their lowest level since May 2013, according to Frank Nothaft who is the chief economist at Freddie Mac.
Plunging oil prices, caused by a slowdown in Russia and other global economies, has been pushing investors into safer investments such as U.S. Treasuries, said Keith Gumbinger, vice president of mortgage information firm, HSH.com.
“This is again driving down yields and pulling mortgage rates right along with them,” he said.
Gumbinger also added that another factor weighing on rates is that few people are seeking loans.
Despite the bargain rates, the Mortgage Bankers Association reported a 3.3% decline in the number of people applying for mortgages last week.
If buyers and existing homeowners seeking to refinance do strike while rates are this low, they can save a lot of money. This week’s 0.13 percentage point drop alone results in a $15 a month savings on a $200,000 mortgage balance, or $180 a year.
Author:John Lewis Phone: 951-640-8562 Dated: January 1st 2015 Views: 234 About John: 26 years as Temecula and surrounding expert in Real Estate. From first and experienced owners to inv...
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