For the fifth consecutive week, US mortgage rates continue to fall and for the first time since 2017 have fallen below 4.00% and sit at 3.99% for a 30 year fixed rate mortgage (FRM). These historically low mortgage rates make it a perfect time for homeowners to refinance their homes, which explains the three-year high activity in refinance applications. Week over week there has been an astounding 47% increase in home refinance applications. One of the driving factors according to economists for the fall in rates, might come as a shocker, but is attributed to trade tensions with China, Mexico, and recently India. Below is a graph from FreddieMac with rates as of June 13, 2019.
Not only are 30-yr FRM falling, but 15-yr FRM are also falling and now sit at a 3.38% fixed rate while 5/1 adjustable rate mortgages fell to 3.67% from 3.74% the prior week, according to mortgage experts. So if you’re a first-time home buyer or a homeowner, now would be a good time to lock down a low mortgage rate, just make sure to shop around first.
