Categorized | Finance and Mortgage

Mortgage Rates Fall To New Lows In US

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The housing market continues to grow more affordable in the United States for those that are able to secure a mortgage loan. Rates for 15-year and 30-year fixed loans fell to all-time record lows once again in the last week. It was the fifth week in a row that the 30-year fixed-rate mortgage loans experienced a decline.

The rate for 15-year fixed loan fell to below three percent for the first time in history. Now that the three percent barrier has been broken, there is no telling as to how long mortgage loans will continue to drop in the near future. 30-year fixed-rate loans dropped to 3.75 percent.

When crunching the numbers, the new 30-year fixed-rate of 3.75 percent could potentially provide a savings of more than sixteen thousand dollars over the thirty years when compared to the average mortgage loan rate from the previous year. Those that opt to refinance with a new 15-year fixed-rate loan will enjoy a savings of at least thirty-seven dollars per month. Those that refinance will have a monthly payment of approximately $689 for every one hundred thousand dollars that is borrowed.

The drop in mortgage loan rates has little to do with the housing market here in the United States. Rather, it has much to do with the unstable European market.

Economists believe that there has never been a better time to buy a home, and many house flippers agree. Mortgage loan rates are half of what they were at the peak of the residential real estate bubble, and homes have never been more affordable.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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