Great news for homebuyers! The US 30-year fixed mortgage rate has reached its lowest level in two months, presenting a wonderful opportunity for those in the market for a new home. According to the Mortgage Bankers Association, the average 30-year mortgage rate fell for the fifth consecutive week, down 10 basis points to 6.3% in the week ending April 7.
This drop in mortgage rates has already had a positive effect on the housing market, with purchase applications increasing by 8%. Chief economist Mike Fratantoni believes that this trend will continue, as potential homebuyers have been eagerly awaiting a reduction in mortgage rates.
Moreover, the overall mortgage loan application volume increased by 5.3% on a seasonally adjusted basis from the previous week. Additionally, the average contract interest rate for the 15-year fixed-rate loans decreased 19 basis points to 5.78%, and the average 5/1 adjustable-rate mortgage also decreased by 10 basis points to 5.51% week over week.
If you are in the market for a new home, now is a great time to take advantage of these historically low mortgage rates!
