Mortgage rates continue to defy industry experts who predicted that the 30-year fixed rate loan would hit 5% this year. Instead, the national average 30-year fixed rate mortgage dropped to 3.59% this week – its lowest rate since February 2015! Last week’s average rate was 3.71%, according to government mortgage giant Freddie Mac.
“Low mortgage rates and a positive employment outlook should support a strong housing market in the second quarter of 2016,” Freddie Mac’s Chief Economist, Sean Becketti, explained. Another piece of good news? A whopping seven million homeowners are now eligible to refinance!
Rates continued to dip further on the heels of cautious comments by Federal Reserve Chair Janet Yellen. The central bank recently released documents suggesting that they are unsure when they will raise interest rates, despite the original plan to hike the interest rate four more times this year. Instead, the Fed is acting cautiously amidst global economic tumult and slow growth. While not directly tied to the Federal Reserve’s interest rate, mortgage rates tend to follow any decision by the Fed.