Mortgage fall to an all time low*

The average U.S. rate for a 30-year fixed mortgage fell to 3.29% last week, the lowest ever recorded by Freddie Mac in a series that goes back to 1971. 

Falling home-loan rates have boosted mortgage applications, a sign the housing market may help the U.S. economy stave off a recession, said Sam Khater, Freddie Mac’s chief economist.

“Mortgage applications increased 10 percent last week from one year ago and show no signs of slowing down,” Khater said. “Given these strong indicators in rates and sales, as well as recent increases in new construction, it’s clear the housing market continues to be a positive force for the broader economy.”

Mortgage rates are falling “amidst increasing concerns regarding the economic impact from the spread of the coronavirus, as well as the tremendous financial market volatility,” Mike Fratantoni, Mortgage Bankers Association chief economist said. 

In addition to a drop in the 30-year fixed, other rates dropped as well, according to the Freddie Mac survey. The 15-year fixed rate averaged 2.79%, down from 2.95% last week.

What does that mean for Buyers? Buyers will have MORE buying power. For every 1% decrease in interest rates, buyers face a 10% increase in the price of home they can purchase.

And for Sellers? If sellers are planning to sell and buy something else or pull equity out to buy an investment property, your buying power will go lots further too.

If you're sitting on the fence, it's time to make a move. Questions? Contact me.

*Source: HousingWire