Rates for thirty-year mortgages continue to tumble.
The average rate for the benchmark long mortgage fell to 3.89 percent, the fourth straight week of such declines.
As I have noted previously, the plunge in interest rates has likely fueled a little more housing activity, which can be a boon for the economy. And despite starting the year with a consensus amongst so-called experts that this was the year we’d finally see rate hikes, interest rates have continued to fall.
Mortgage rates on the thirty-year are now 50 basis points lower than at the start of the year.
So now, with no signs of inflation and some concern that the economy may be slowing a bit, it doesn’t look like rates will be heading higher according to the so-called experts until next year.
The rate of a fifteen-year mortgage now stands at 3.10 percent.