Although Record Lows, Mortgage Rates Are Still Falling

Mortgage rates are at record lows but are now even lower according to Freddie Mac. In fact, they are at the lowest level they have recorded in the last 50 years. The average 30-year fixed-rate mortgage is currently at 3.29% and the 15-year fixed-rate fell to 2.79%.

“It’s definitely a good time for someone looking to buy a home to get financing,” said Mark Hamrick, senior economic analyst for Bankrate. “Home prices have risen, and it is rough for those looking for a bargain, but the financing has gotten better.”

Rates are believed to even dip lower in the near future. Due to the unforeseen circumstances revolving around the coronavirus outbreak, the market is in turmoil. The “rock-bottom 10-year” Treasury yield along with historic low bond yields will play a major roll in the rates going even lower. The Federal Reserve announced that an emergency rate cut will take place. The benchmark interest rate range will be cut down to 1% to 1.25%.

This comes at a great time with Spring just around the corner. More people who were on the cusp of buying a home will be quicker in their decision making with these low rates.

“Hesitant home buyers will be enticed to take advantage of low-interest rates,” said Lawrence Yun, chief economist at the National Association of Realtors, in a statement.

Even though rates are low, it doesn’t mean buyers should throw caution to the wind. According to, “knowing when to make the move can be tricky.” When researching whether to refinance or secure a new mortgage you need to weigh the pros and cons. Compare your current numbers with the numbers you are being offered on a mortgage refinance. Always shop around and see what lenders have to offer. Many lenders offer competitive rates and include some closing costs.

Mike Hennessy, a certified financial planner with Harbor Crest Wealth Advisors in Fort Lauderdale says, “if you can meaningfully save on your interest costs, build equity quicker, or extract equity at a reasonable cost to fund a renovation project, then take the bird in hand today.”

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