US mortgage rates hit 3-year low

The 30-year rate fell to 3.45%, which could boost housing market as spring approaches

TRD NATIONAL /
Feb.February 10, 2020 11:00 AM
The 30-year fixed-rate average fell to 3.45 percent (Credit: iStock)

The 30-year fixed-rate average fell to 3.45 percent (Credit: iStock)

Mortgage rates have hit their lowest level in more than three years, which could provide a boost to the country’s housing market heading into spring.

The 30-year fixed-rate average fell to 3.45 percent, according to the Wall Street Journal, citing data released Thursday by Freddie Mac. That’s down from 3.51 percent the week before and 4.41 percent at this time last year. The average rate for a 15-year mortgage also dropped to a three-year low at 2.97 percent. In June, it stood at 3.28 percent.

But home prices nationwide have skyrocketed in recent years, so the lower mortgage rates might not be enough to enable owners to buy their first homes. They also reflect concerns about the global economy.

Low mortgage rates did help push home sales to a yearly high mark in December, when the country saw 5.54 million home sales for a 3.6 percent increase from November. The lower rates have also spurred several refinancings, with the volume of applications increasing by 15 percent from the prior week to hit their highest mark since June 2013, according to recent data from the Mortgage Bankers Association.

Fannie Mae chief economist Doug Duncan told the Journal that the low mortgage rates could be good for existing and prospective homeowners.

“It’s very much a historical opportunity for folks who have an existing mortgage to refinance and for credit-qualified people to lock in a low rate,” he said. [WSJ] — Eddie Small


Related Articles

arrow_forward_ios
(iStock)

Déjà vu: New home sales hit 14-year high in August

Déjà vu: New home sales hit 14-year high in August
(iStock)

A foreclosure crisis is looming — but here’s what’s different from 2008

A foreclosure crisis is looming — but here’s what’s different from 2008
Sales of existing homes in the U.S. hit a 14-year high last month, according to a new report. (iStock)

US home sales hit 14-year high

US home sales hit 14-year high
An increase in mortgage applications came despite interest rates ticking up (iStock)

Applications for home mortgages surged last week

Applications for home mortgages surged last week
United Wholesale Mortgage Mat Ishbia and Gores Holdings IV CEO Alec Gores (Photos via United Wholesale Mortgage and Gores)

United Wholesale Mortgage goes public with $16B valuation

United Wholesale Mortgage goes public with $16B valuation
(iStock)

Banks required balloon payments, stayed mum on foreclosure moratorium

Banks required balloon payments, stayed mum on foreclosure moratorium
Fed Board Governor Lael Brainard (Getty, iStock)

Fed wants banks to step up lending in low-income areas

Fed wants banks to step up lending in low-income areas
The number of single-family homes on the market hit historic lows in July, driving prices up (iStock)

US housing supply reaches nearly 40-year low

US housing supply reaches nearly 40-year low
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...