Dropping mortgage rates could make homeownership more accessible in 2015. Those who missed out on the low rates seen in May of 2013 will be happy to learn that this January’s rates are dropping just as low. On January 6, the lowest available rate was recorded at 3.65 percent, which is .375 percent lower than the highest rates seen this past December. At the end of 2014, 30-year FRM rates were at 3.87 percent.
Thirty-year FRM rates have been at less than 4 percent for more than seven weeks now. Fifteen-year FRM rates have been averaging at around 3.15 percent over the same period. These rates show 20-year lows that are likely to boost the purchasing power of many Americans looking to either buy a home or refinance.
This mortgage rate data comes from a weekly survey conducted by Freddie Mac. The above-mentioned rates reflect those being seen from private lenders. Mortgage rates from federal agencies like the VA and the FHA can be expected to be even lower.
The decreasing rates can be attributed to several economic factors, including new jobs being added to the economy, falling inflation rates, and a strengthening U.S. Dollar. The condition of markets abroad has a significant influence on mortgage rates in the U.S., and many analysts predict that auspicious mortgage rates will stick around until European markets begin to bounce back from the current downturn.
What does all this mean for those who are in the process of buying or refinancing? Those who are getting ready to close on a mortgage deal might want to do so ASAP and lock in rates to avoid losses when rates go up again.
If you’re thinking about buying a new home, now may be the right time. To learn more about homes in Colorado Springs and the surrounding areas, contact Park Avenue Properties of Colorado Springs or start searching for homes today!