The average 30-year fixed rate loan is hovering around its lowest level in over a year, according to mortgage experts nationwide. Bankrate.com recently reported that the average rate dropped a significant 8 basis points to 3.54%.
Additionally, the most popular loan for homeowners refinancing, the 15-year fixed rate mortgage, dropped 9 points to 2.82%. Luxury homes also became more affordable this week, with jumbo loans ($650,000 or higher) also plunging 9 points to 3.54%.
The reason for the ultra-low rates is likely attributable to global economic insecurity. As investors worry about falling oil prices in the Middle East and the growing European bank crisis, they have instead sought security by investing in U.S. government bonds. This, in turn, has driven down interest rates across the nation