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As one of the most expensive purchases you can make, buying a home can be a daunting decision. But right now might be the best time to buy your Dream house because mortgage rates across the country are currently at their lowest level in 8 years.
On Monday, the average interest rate on the 30-year fixed mortgage, one of the most popular types of mortgages, fell to 3.34%, according to Daily mortgage news. Around the same time last year, it was around 4.57%. The 15-year mortgage rate, another popular mortgage, is also lower than last year, dropping from 4.14% to 3.09%.
“At no time in modern economic memory have mortgage rates been able to drop significantly or aggressively from where they are now,” said Matthew Graham, COO of Mortgage News Daily in a press release. item analyze low mortgage rates.
Why are the rates so low right now? According to CBS News, the Federal Reserve cut rates three times last year amid signs of economic weakness. It continues to keep rates low, while inflation stays the same. “And once [banks] start to expect it, they’re willing to lend long-term money at lower interest rates, ”University of Kansas economist and business professor Bob DeYoung told CBS.
Coronavirus fears are also lowering mortgage rates by pushing down stocks and raising bonds. According to the the Wall Street newspaper, the yield on the 10-year Treasury bill, which serves as a benchmark for mortgages and other lending rates, fell to an all-time low today amid fears the epidemic could impact the economy global.
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