The International Monetary Fund (IMF) has joined the European Central Bank and the Federal Reserve in expressing their concerns about the health of the global economy. Many experts find these concerns to be valid due to the state of oil prices, home loan rates, and the economy overall. Home loan rate anxieties seem justified following last week’s release of the Home Purchase Sentiment Index by Fannie Mae. The index has reached the lowest it has been in a year and a half.
This data shows that a thirty-year fixed mortgage has dropped to 3.58 percent, a low point that it hasn’t touched since May 2013. While this is only a .01 drop from last week, it is still a serious concern. It’s not off much from last year, either, when it stood at 3.67 percent. However, the consistent decline in the rate is what has experts concerned. It has dropped an alarming total of 43 basis points since 2016 began.
As far as fifteen-year adjustable mortgages go, the average has gone from 2.88 percent to 2.86 percent, off from last year’s 2.94 percent. Five-year adjustable mortgages are actually up a small amount, rising to 2.84 percent from 2.82 percent last year.
As anticipated, the Mortgage Bankers Association reported the number of mortgage applications has increased as more and more borrowers race to take advantage of these low rates.
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