Overall, long term average mortgage rates dropped this week. The average rate on 30-year mortgages dropped, as did the average rate on 15-year mortgage rates. These rates have been almost continuously dropping and are historically low levels. They do change each day, but looking at the average for the week is a good way to get a read. To find this week’s mortgage rates, Freddie Mac surveyed lenders from across the country. The mortgage company does so each week and shares the averages.
The average benchmark 30-year fixed-rate mortgage dropped to 3.44 percent from 3.46 percent last week. A year ago, this rate was 3.90 percent and the all-time low was 3.31 percent in November 2012. The 15-year fixed rate mortgage also dropped, from 2.77 percent last week to 2.76 this week.
Why are this week’s mortgage rates lower? This could be for several reasons.
“The British vote in June to leave the European Union roiled financial markets and drove up prices of U.S. Treasury bonds — lowering their yields with long-term mortgage rates following suit. Since then, refinancing’s share of mortgage activity has stayed above 60 percent, Freddie Mac noted,” wrote the Associated Press.
For most of the past weeks, mortgage rates have been dropping. Bankrate.com‘s Rate Trend Index showed that 7.7 percent of panelists believe mortgage rates will rise over the next week. 30.8 percent believe it will fall, while 61.5 percent believe it will stay about the same.
When mortgage rates are low, it’s a good time to refinance your home or finance the purchase of one. That means that if you have been waiting for a good time to buy a home, that time is probably now. There has been talk of the Federal Reserve raising rates soon, so take advantage of the low mortgage rates while you know you can. Our agents at RE/MAX Paradise are happy to discuss financing the purchase of your Miami property today!