This week, the interest rate for a 30-year fixed mortgage rate averaged 3.05%. A year ago, the average rate was 3.36%. However, before last week, the average mortgage rates remained bellow 3% since July 2020.
Right now, rates increased because the economy is improving, vaccines are being administered, and there’s additional stimulus pending. However, even as rates increase, the housing market remains healthy.
Last year, mortgage rates were historically low, and remained that way until last week. Because of the improving circumstances, it is unlikely that they will experience another dramatic drop in the near future. However, even though the rates are higher than they were a couple of months ago, they are still at historically low levels for the near future.
Furthermore, the total number of mortgage applications decreased by 1.3% for the week of March 5. This is because of a drop in refinance applications. On the other hand, purchase loan applications increased by a seasonally adjusted 7% week-over-week.
For people looking to buy a home, or owners looking to refinance, favorable rates can still be found. In fact, if your current mortgage rate exceeds today’s rates by more than one percentage point, you can consider refinancing your loan.
Read full article: https://money.com/current-mortgage-rates