Long-term mortgage rates in the U.S. had the biggest recorded drop in nearly four years in the month of November. Although they have hit a record drop, they still remain much higher than they were a year ago. Either way, SETCO is ready to help our clients with their closings whether they mortgage rates be high or low.
Freddie Mac claimed that the average rate on the benchmark 30-year, fixed-rate mortgage fell to 4.81 percent in November. This was down from the already low 4.94 percent a week earlier. This drop was the largest weekly drop since January 2015, almost four full years ago. A year ago, the mortgage rate was 3.92 percent, so although there was a drop in the rate, there is still a long way to go to get back it back down to where it was last year.
In comparison to the 30-year, fixed-rate mortgage loan, the rate on 15-year, fixed-rate loans fell from 4.36 percent to 4.24 percent. A year ago, though, the rate was at 3.32 percent. Since prices have dropped to the lowest they have been in a year, now is as good of a time as ever to buy a home. SETCO wants to help you buy your dream home, especially when we can help you get the best deal possible on that home.
Sam Khater, Freddie Mac chief economist, says that rates have dropped recently because of tumbling oil prices and stock prices. The reason rates have risen in the last year is because of the strong U.S. economy.
Freddie Mac calculates average mortgage rates by surveying lenders across the country between Monday and Wednesday of each week. This average does not include extra fees, known as points, which most borrowers must pay to get the lowest rates.
The average rate on 30-year fixed-rate mortgages also fell in November from 0.5 point to 0.4 point, while the free on 15-year mortgages rose to 0.5 point from 0.4 point. In addition to that, the average rate for five-year adjustable-rate mortgages went to 4.09 percent from 4.14 percent, and the fee remained at 0.3 point.
Mortgage rates are a crucial element to consider when buying and closing on a house. With the rates being lower than usual for the last year, now is the time to buy a house.
Give us a call for all of your housing needs; we are ready to help our clients.