Mortgage rates have dropped significantly this week, according to the latest figures from the Mortgage Bankers Association. The average rate for a 30-year fixed mortgage fell to 3.45%, down from 3.51% last week. This is the lowest rate since the survey began in 1971.
The drop in mortgage rates is good news for potential homebuyers, as it makes it easier to afford a home. It also means that existing homeowners may be able to refinance their mortgages and save money on their monthly payments.
The drop in mortgage rates is due to a variety of factors, including the Federal Reserve’s decision to keep interest rates low and the ongoing trade tensions between the United States and China. The Fed’s decision to keep interest rates low has helped to keep mortgage rates low, as lenders are more willing to offer loans at lower rates.
The trade tensions between the U.S. and China have also had an impact on mortgage rates. As the two countries continue to impose tariffs on each other’s goods, investors have become increasingly uncertain about the future of the global economy. This has caused them to move their money into safer investments, such as bonds, which has helped to drive down mortgage rates.
The drop in mortgage rates is likely to continue in the coming weeks, as the Fed is expected to keep interest rates low and the trade tensions between the U.S. and China remain unresolved. This could mean that potential homebuyers will be able to take advantage of even lower mortgage rates in the near future.
For those looking to purchase a home or refinance their existing mortgage, now is a great time to take advantage of the low rates. It’s important to shop around and compare rates from different lenders in order to get the best deal possible. Additionally, it’s important to understand all of the terms and conditions of any loan before signing on the dotted line.
Overall, this week’s drop in mortgage rates is good news for potential homebuyers and existing homeowners alike. It provides an opportunity for people to save money on their monthly payments and take advantage of historically low mortgage rates.