The average rate on the 30-year fixed mortgage has dropped to 3.94 percent, the record low set in October. The rate on the 30-year home loan fell from 3.99 percent the previous week according to Freddie Mac. This week’s 3.94 percent average matches the lowest on records dating to the 1950s.
Low rates offer a historic opportunity for those who can afford to buy or refinance. However, many people either can’t take advantage of the record-low rates or have already done so. Sales of previously occupied homes are just slightly ahead of last year’s dismal sales figures – and those were the worst in 13 years. New-home sales appear headed for their worst year on records dating back half a century.
One in four (25%) experts polled by Bankrate.com this week expect record-low rates to drop even further over the short term, while 56% predict no change. Only 19% foresee an increase.
The average rates don’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
Source: Florida Realtors
