It is still a great time to build your dream home!
The average 30-year fixed rate mortgage fell this week from 3.72% to 3.65%, its lowest point in 10 months, according to Freddie Mac.
Despite the Federal Reserve’s decision to raise interest rates at the end of last year, mortgage rates have continued to drop. Volatility in financial markets driven by concerns of a global economic slowdown and the falling price of oil has pushed investors towards U.S. Treasuries, which in turn has kept rates low for potential home buyers.
According Sean Becketti, Freddie Mac’s chief economist, the slip in mortgage rates is to be expected because mortgage rates adjust slower to capital market rates.
“If Treasury yields were to hold at current levels, mortgage rates might well sink a little further before stabilizing,” Becketti said.