30-Year Mortage Rates Reach 2014 Low

30-year fixed interested rates recently stood at the exceedingly low 3.8%, according to a recent CNN report citing Freddie Mac. We have not seen rates this low since May of 2013.

Additionally, the average 15-year fixed loan fell to a mere 3.1% which we recently saw this past October. A 15-year fixed loan is a popular solution for those looking to refinance.

Chief economist at Freddie Mac, Frank Nothaft, also indicated that mortgage rates have been falling in conjunction with with 10-year Treasury yields.

Why the low rates?

It seems that we can attribute this largely to plunging oil prices as a result of slowdowns in Russia and other global economies, according to Keith Gumbinger, vice president of mortgage information firm HSH.com. It is this situation which appears to be driving down yields and pulling mortgage rates down as well.

Additionally, Gumbinger stated that fewer people are seeking loans right now, which can also press on rates. In fact, the Mortgage Bankers Association recently reported a 3.3% decline in the number of people applying for mortgages.

What does this mean for buyers?

These prospects look great for buyers - in fact, buyers can save a substantial amount of money. This recent dip alone could yield a $15/month savings on a $200,000 mortgage balance - which is $180 saved a year.

The time is right for buyers, especially in a slower market with eager sellers. If you are curious what these numbers mean for your situation or you are contemplating buying a home, don't hesitate to send us an email or give us a call! We'll be happy to help.

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