Breaking News: Mortgage Rates Hit Lowest Level in Over a Year
Great news for potential homebuyers and homeowners looking to refinance – mortgage rates have dropped to their lowest level in over a year. According to Freddie Mac, the average rate on a 30-year fixed-rate mortgage is now 6.47%, down from 6.73% just last week. This is a significant decrease from the 6.96% average rate seen a year ago.
Even better, the average rate for a 15-year fixed mortgage is now 5.63%, compared to 5.99% the previous week. A year ago, the rate on a 15-year loan was at 6.34%. These lower rates are a positive sign for the housing market and could potentially spur more activity in the real estate sector.
Why the sudden drop in mortgage rates? According to Sam Khater, Freddie Mac’s chief economist, the decline can be attributed to an “overreaction to a less-than-favorable employment report and financial market turbulence for an economy that remains on solid footing.” This has led to expectations that the Federal Reserve will cut interest rates in September, causing long-term bond yields to fall and subsequently pushing mortgage rates downward.
The good news doesn’t stop there – more homeowners are taking advantage of these lower rates to refinance their existing loans. In fact, applications to refinance a home loan rose by 16% last week compared to the previous week, as reported by the Mortgage Bankers Association.
If you’ve been considering buying a home or refinancing your current mortgage, now may be the perfect time to take advantage of these historically low rates. Keep an eye on the market and consult with a financial advisor or lender to see how you can benefit from this favorable environment. Stay tuned to Extreme Investor Network for more updates and insights on all things finance.