Mortgage Rates Reaching Historic Lows
For some period of time now mortgage rates in the Austin area and across the nation have been slowly dropping. Mortgage rates continued to slide last week and many analysts are speculating that they could fall below 4 percent.
The 30-year fixed rate mortgage fell to an average of 4.32 percent last week, down from 4.39 percent the week before according to Freddie Mac, which tracks mortgage rates across the country. The 15-year fixed rate mortgage fell to a record low of 3.50 percent, down from 3.54 percent the previous week. The 30-year fixed rate all-time low was set last November when it reached 4.17 percent.
Historically, mortgage rates tend to follow the yield on the 10-year Treasury note. The unstable economy has pushed many investors to transfer money from stock into bonds. As a result this has put Treasury yields to their historic lows.
The decrease in interest rates has in the past increased the number of refinance applications. In fact, applications for refinancing jumped 22 percent just two weeks ago. The average fees that home owners are paying on 30-year and 15-year fixed rates loans was 0.7 percent. Low interest rates are also making home ownership more obtainable for many.
If a new home or condo in Austin is in your future, contact Kinan Beck. Contact us now at (512) 671-7368. Kinan specializes in Downtown Austin, Lake Austin,Lake Travis, North/ Northwest Austin, South/ Southwest Austin,Westlake.