Freddie Mac has released a new report showing that mortgage rates have hit their lowest point in a three-year period. Rates for a 30-year fixed mortgage are now 3.54 percent, the lowest they have been since May 2013 when they dropped to 3.51 percent. This is still above the all-time low that the industry saw in November 2012 when rates hit 3.31 percent. Rates for a 15-year mortgage hit 2.81 percent, another low.
Experts point to several contributing factors to explain this low rate. One is the fact that earlier this week, the Federal Reserve decided to not increase interest rates. Another is the global economy – many investors are concerned that the recent trends indicate an overall weakness.
Despite the current lows, many anticipate a turnaround by the end of the year. Mortgage Bankers Association Economist Joel Kan does not expect to see rates hit another major dip simply because he feels that the current rates are already near the lowest point they will hit. He anticipates that the Federal Reserve may raise rates twice before December, moving the 30-year fixed mortgage up to around 4 percent.
Moneytips can help you refinance your existing home loan.