Housing News

Mortgage Rates Hover Near Three-Year Lows

Mortgage interest rates remained just barely above three-year lows. This presents homebuyers and homeowners with the continued opportunity to save money when buying a home or refinancing their existing loans.

Rates averaged 6.10% for 30-year, fixed-rate loans in the week ending Jan. 29, according to Freddie Mac data. That was barely up from the previous week, when they averaged 6.09%.

This week’s rates were far below where they were a year ago, when they were near 7%.

“Mortgage rates remain near their lowest levels in three years, which is encouraging for potential homebuyers who have waited to enter the market for some time,” Freddie Mac Chief Economist Sam Khater said in a statement.

Khater also noted that the recent run of lower rates is leading to an increase in the number of people applying for mortgages.

Refinance applications were up 156% from the same time last year, while purchase mortgage applications were up 18%, according to the latest data from the Mortgage Bankers Association.

When rates fall, more homebuyers may be able to qualify for loans. Many may be able to increase their purchasing power and lower their monthly mortgage payments.

The news of rates staying basically the same as last week comes on the heels of the U.S. Federal Reserve holding its rates steady during its January meeting.

While mortgage rates are separate from the Fed’s benchmark interest rate, the two tend to move in the same direction. So, if the Fed indicates a rate cut is likely, mortgage rates often come down.

Despite the Fed holding off on any further cuts, mortgage remained basically unchanged.