If you were excited for the start of the spring homebuyinig season, you’ll be ecstatic to hear this: After months of already low interest rates, they’ve dropped again to 3.45 percent, the lowest seen since 2016. This is the third straight week of decline. Low rates may spur more homebuying activity as they make affording a home easier, and those who have already found their dream home may choose to refinance as well. But experts warn that this may be the last year for truly affordable housing for the foreseeable future. As the inventory dwindles and the economic landscape changes, they do not expect an increase in affordability for quite some time. But for now, the housing industry can celebrate.
Mortgage rates have dropped to the lowest levels since before the 2016 presidential election.
The 30-year fixed-rate mortgage averaged 3.45% during the week ending Feb. 6, a decrease of six basis points from the previous week, Freddie Mac reported Thursday. This was the third consecutive week in which mortgage rates dropped.
The last time the 30-year fixed-rate mortgage was at or below this level was in October 2016, when it averaged 3.42%.
The 15-year fixed-rate mortgage also fell three basis points to 2.97%, according to Freddie Mac. This was the first time since 2016 the average rate for the 15-year fixed home loan fell below 3%. The 5/1 adjustable-rate mortgage, however, increased eight basis points to an average of 3.32%.
