Primary Mortgage Market Survey Results released earlier today, Mortgage Company Freddie Mac reported that the current Average 30-Year Fixed Mortgage Rate in the United States is 3.59%, down from 3.66% last week, and now the lowest rate since May of 2013. One year ago, the Average 30-year mortgage rate was 4.23%, and the lowest average rate ever realized was 3.31% back in November of 2012.
The average 15-year mortgage rate eased to 2.92% from 2.98% last week. The 15-year mortgage rate is a popular option for those seeking a refinance, and thus this relatively low rate continues to provide current property owners with an enticing option.
The message the Fed issued to the public last week stated their intent on remaining “patient” and delaying raising interest rates from these historically low levels despite the strengthening economy.
Low interest rates such as these can actually help to continue to spur the already strengthening economy, as more homeowners chose to refinance their current mortgages, replacing more expensive loans with more affordable ones, and thus freeing up additional funds which get redistributed into the marketplace in the form of consumer spending.
The good news for all of us private real estate owners is that borrowing money for real estate purposes continues to be as affordable as ever – a trend that is not likely to continue for much longer after the economy entrenches itself further into its recovery phase and as the inflationary rate nears closer to its target rate.
Primary Mortgage Market Survey (US Weekly Averages):