For the first time in history, interest rates have fallen below 4% on a 30-year-fixed mortgage. This is great news if you are looking to buy a home, or refinance your current mortgage. Hopefully, these historic rates also provide some relief to the struggling recovery. The idea is if people pay less of their income to their mortgage, they will have more money to spend on other things.
If you are in the market, this is unquestionably a good thing.
The average rate on the 30-year fixed mortgage this week fell below 4 percent for the first time ever, to 3.94 percent.
For those who can qualify, it’s an extraordinary opportunity to buy or refinance. And mortgage rates could fall even further now that the Federal Reserve plans to reshuffle its portfolio of securities to try and lower long-term rates.
On Thursday, Freddie Mac said the average rate on a 30-year fixed mortgage dropped from 4.01 percent last week, the previous low. The average rate on a 15-year fixed loan, a popular refinancing option, dipped to 3.26 percent, also a record.
If you are looking to buy or refinance a home in the Phoenix area, make sure you take advantage of these historically low rates. If you have any questions give me a call at 602-279-7777, or email me at Cal@ProstaffMortgage.com, or simply use the contact us form.