The Federal Reserve has kept its benchmark interest rate close to zero as it continues to support the economy. As a result, many lenders are currently offering some of the lowest mortgage rates seen in decades.
For those looking to purchase or refinance a home, now may be a great time to lock in a low rate. Currently, the average rate for a 30-year fixed mortgage is around 2.88%. This is the lowest rate since August 2020 and nearly one full point lower than where it was at the start of the year.
15-year fixed rates are also seeing historic lows, with the average rate currently hovering around 2.48%. This means that borrowers can save significantly on their monthly payments while also reducing their overall mortgage loan term.
Other mortgage options such as adjustable-rate mortgages, or ARMs, also have interest rates lower than they were at the start of the year. ARMs often start off with a lower interest rate than a fixed-rate loan and can be beneficial to those who only plan to own the home for a few years.
Refinancing rates are also at all-time lows, with the average rate for a 30-year fixed refi hovering around 2.76%. This is extremely beneficial for homeowners who currently have a mortgage with a higher interest rate as they can now save money by refinancing and locking in a lower rate.
Overall, it appears as though mortgage and refinance rates are in an optimal spot for those who are looking to purchase or refinance a home. Those who have been on the fence about taking out a loan should consider now as ideal time to do so in order to take advantage of these low rates.
Summary:
Mortgage and refinance rates have reached near-historic lows due to ongoing economic support from the Federal Reserve. The average rate for a 30-year fixed mortgage is currently around 2.88%, while 15-year fixed rates hover around 2.48%. Adjustable-rate mortgages (ARMs) also remain lower than they were at the start of the year, and refinancing rates for a 30-year fixed refi stand at 2.76%. This offers great savings opportunities for both homebuyers and homeowners: homebuyers can lock in a low rate, while homeowners can save money by refinancing their loan. Overall, now may be the ideal time to take advantage of these low rates.
This article was contributed on Dec 12, 2023
