Mortgage interest rates hit a 3-year low earlier this month, the lowest they have been since November 2016.
For fixed-rate 30-year mortgages, FHA loans are currently in the mid 3’s. Conventional loans vary a bit more, as they are more dependent on credit scores, but we presently see rates in the high 3’s to low 4’s.
At the start of 2019, FHA loans were in the low 4’s and Conventional mortgages were in the mid 4’s, so the drop since January has been significant. When you start looking at 15-year mortgages, rates drop even lower.
An Affordable time to Buy or Refinance
Even though the purchase price of homes has risen slightly, it is more affordable to buy a home now than it was last year, according to Forbes.
The drop in mortgage rates benefits those looking to buy a home, as well as homeowners considering refinancing their mortgage. Over 8 million people with 30-year loans could lower their interest rate by 0.75% or more - an amount that would save a significant sum of money throughout the loan.
We can never predict the future of mortgage rates, but we know is that right now they are very low. If you are interested in buying or refinancing in the next year, now is the time to speak with your mortgage lender to learn what you can afford with today’s rates.
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