Categorized | Finance and Mortgage

Mortgage Rates Drop to New Record Low

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The mortgage rates keep dropping, and the residential real estate market continues to grow more affordable. For the third straight week, mortgage rates fell to an all-time record low for both 30-year and 15-year mortgages.

With prices having already hit what many economists believe to be the bottom, the residential property market has become incredibly favorable to buyers. As can be expected, more buyers are looking to enter the market by purchasing a home. Those that are able to qualify for either a 30-year or 15-year mortgage loan are enjoying some of the best deals on homes in years.

The current rate for 30-year fixed-rate mortgage loans is 3.79%. For 15-year fixed-rate mortgage loans, the current rate dropped to 3.04%. The decline in both mortgage loan rates has put them at the lowest they have ever been since mortgages first began in the 1950s.

New homebuyers aren’t the only ones benefiting from the low mortgage rates. Those looking to refinance are also reaping the benefits. Most of those looking to refinance are option for 15-year fixed-rate mortgage loans.

While many believe that the market has hit the bottom, home sales are still relatively low due to the difficulty that many buyers are having in getting approved for a mortgage.

With that said, construction is on the rise for residential properties. Many economists believe the construction of new properties to be a very positive sign for the market. There is hope that the market will finally start to see some strong gains in the next year, and as long as the mortgage rates remain at their current low levels, it is very likely that those gains will take place.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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