With decreasing 30-year fixed-rate mortgages, 15-year fixed-rate mortgages, and 5-year adjustable rate mortgages, consumers are presented with a unique opportunity to save tens of thousands on their home loan.
Today’s mortgage rate trend is being driven by factors including the Federal Reserve’s signal to continue its policy of keeping rates low until there is measurable economic growth, robust job creation, and improved inflation. Homeowners and prospective homebuyers should remain mindful of certain factors that could affect mortgage rates moving forward. These include the level of mortgage supply and demand and changes in consumer sentiment for the housing market.
Currently, lenders are offering 30-year fixed rate mortgages at an average of 3.05%, down from a high of 3.26% over the past week. 15-year fixed rate mortgages are available at an average of 2.44%, down from 2.54% last week. Meanwhile, 5-year adjustable rate mortgages are on average at 1.97%, down from 2.10% over the last week.
With the recent drop in mortgage rates, homeowners are now scrambling to lock in their rate before they increase. Refinancing is also becoming very attractive, as it allows homeowners to take advantage of the low rates without having to sell their home and purchase a new one.
The Federal Reserve signaled it will keep interest rates low until 2023, giving borrowers a little bit of assurance that rates won’t be rising anytime soon. Since the pandemic began, the Fed has been taking action to help support the economy, and this move is just another example of the Fed doing what it can to stimulate growth and lower unemployment. Homeowners should take advantage of this temporary reprieve from higher interest rates while they have it.
Mortgage and refinance rates today are at historically low levels, providing an excellent opportunity for both buyers and homeowners who are looking to refinance. The Federal Reserve’s promise to keep rates low for the foreseeable future should give a sense of confidence to those looking to take out a loan. The recent trend of decreasing mortgage rates has made it even more attractive for borrowers, and they should act fast if they want to take advantage of the current market conditions.
This article was contributed on Nov 23, 2023
