Mortgage rates have just dropped to the lowest level in almost 50 years, compelling both homeowners and home buyers to get off the couch to take advantage of record-level savings on their mortgage.
“The average 30-year fixed-rate mortgage hit a record 3.29% this week, the lowest level in its nearly 50-year history,” said Sam Khater, chief economist of mortgage giant Freddie Mac. “Meanwhile, mortgage applications increased 10% last week from one year ago and show no signs of slowing down.”
To put this record rate in perspective, 3.29% even dips below levels seen during the housing crisis. The average 30-year fixed-rate mortgage dropped to 3.31% in 2012.
At present, 15-year fixed-rate mortgages average 2.79% and five-year adjustable-rate mortgages 3.18%.
This news comes in the wake of the Federal Reserve’s decision on Tuesday to slash short-term federal interest rates by 50 basis points in an attempt to steady