Are you in the market for a new home? Now is the time to start looking. Experts say mortgage rates are the lowest they have seen in a while and a health crisis could be responsible.
With the spring selling season just around the corner, it’s shaping to be a good time to be house hunting. Mortgage rates have been falling and the rate on a 30-year fixed rate loan recently tumbled to 3.45%.
According to freddiemac.com, that’s the lowest since October 2016. The drop in rates are tied to the coronavirus outbreak. Mortgage rates tend to follow moves of the yield on some U.S. treasury notes and those yields have been pushed way down as investors bought bonds as a safe haven as the virus spread.
The low mortgage rates have people shopping for loans at a rapid pace. Mortgage applications recently jumped 5% in just a week, according to the Mortgage Bankers Association. Also, refinancing applications spiked 15% to the highest level in almost seven years.
With rates this low homeowners are looking to take advantage, knowing that shaving even a little off a mortgage rate can save thousands of dollars over the life of the loan.