The average 30-year fixed rate loan fell from 3.92% last week to 3.81% this week, according to Freddie Mac. This is the lowest rate since October, and the third consecutive week of falling rates.
Industry experts blame the decreasing rates on global financial turbulence and concern, including weak inflation, stock market crises, and falling oil prices. As a result, investors are seeking financial safety in American mortgage-backed securities.
The recent rates have defied expert predictions, which suggested that mortgage rates would gradually rise after the Federal Reserve’s Dec 2015 decision to raise the short-term interest rate.