Mortgage Rates Are at 50-Year Lows
Mortgage rates fell again last week, marking the eleventh time since the beginning of the year, according to MarketWatch.
The average interest rate on a 30-year fixed-rate mortgage fell to 2.8 percent, according to Freddie Mac. That figure is one of the lowest in record-keeping that dates back almost 50 years. The average interest rate on a 15-year fixed-rate mortgage fell to 2.33 percent. Today's mortgage rates are more than one percentage point lower than they have been in the past 5 years.
"Mortgage rates remain very low, providing homeowners who have not already taken advantage of this environment ample opportunity to do so," said Sam Khater, Freddie Mac's chief economist. "This means that most low- and moderate-income borrowers who purchased during the past few years stand to benefit by exploring refinancing to lower their monthly payment."The challenge for buyers is less about getting a low rate and more about finding a suitable home."
- The number of homes for sale fell 38 percent last week, compared to a year prior.
- The median home price in September rose by 15 percent, compared to a year prior, according to the National Association of Realtors.
"With prices still rising by double-digits, buyers are finding that price gains are outpacing their wage growth and stunting their borrowing potential," said George Ratiu, Realtor.com senior economist.