People love to talk about interest rates and whether they’re moving higher or lower and how that affects housing. We’ve been in a low-interest-rate environment for so long, we don’t even really remember high interest rates. Back in March 1982, interest rates averaged 17%. This week, rates moved to their lowest level since May 2013—3.75%—according to Freddie Mac.
While rates have been low since the housing market collapse in 2008, they’ve only recently spurred people to start buying houses again. Sales are up, but so are prices. Inventory is low, but so are rates. What’s a home buyer to do? Lock in and buy what you can, if you can afford to, of course. Also, with rents setting record highs, locking in a monthly housing payment seems smart.
As always, shop around for the best rates. Remember, mortgage interest rates are based on a number of factors: your credit score, your debt-to-income ratio, your location, the type of property you’re buying, and the type of loan you’re using. Basically, mortgage rates are like fingerprints, unique to each buyer.
Here’s a look at where rates stand this week, according to the Freddie Mac Primary Mortgage Market Survey:
- 30-year fixed-rate mortgages averaged 3.75%, down from 3.80% last week. A year ago at this time, they averaged 4.28%.
- 15-year FRM averaged 3.03%, down slightly from last week’s 3.07%. A year ago at this time, the rate averaged 3.32%.
- 5-year Treasury-indexed hybrid adjustable-rate mortgages averaged 2.96%, down from 2.99% last week and 3.03% a year ago.
- 1-year Treasury-indexed ARM averaged 2.44% this week, unchanged from last week. At this time last year, the rate averaged 2.52%.