Mortgage rates have seen a steep drop in the last few months, and in the past few days have declined a full eighth of a point. Rates are a quarter of a point lower than average rates in the second half of December.
What’s more, home loan costs are .375 percent lower than December’s highest rates, Mortgage News Daily reported.
Yesterday’s lowest rate available — 3.65 percent — makes it the first day that rates are as favorable as May 21, 2013 — the day before ex-Federal Reserve chairman Ben Bernanke’s congressional testimony kicked off the tapering of the federal government’s bond-buying program. The Fed’s quantitave easing sent mortgage rates soaring.
Interest rates are dependent on individual lenders, however. Experts say not all financial institutions will immediately change their rates to dovetail with the rest of the market. [Mortgage News Daily] — Tess Hofmann