The global economy is hurting. Last year, China’s economy grew at its slowest rate in more than two decades. Since the beginning of the new year, U.S oil prices plummeted by nearly 30 percent – and the Dow Jones industrial average plunged more than 500 points. The downward streak wiped out more than $2 trillion in value from American companies – marking the worst start to a year in market history.
Still, what’s been nothing short of turmoil for global markets has been good for one thing – mortgage rates. As nonstop financial market turbulence drives investors to the safe haven of Treasuries, yields and consequently, rates, continue to fall.
The movement of the 10-year Treasury is one of the best indicators of rising or falling mortgage rates. When yields go down, rates go down – and that certainly seems to be the case today.
Recent demand for safe assets pushed the yield on the 10-year Treasury down below 2 percent – and new data released by Freddie Mac confirms both mortgage rates and points (fees paid to a lender equal to 1 percent of the loan amount) continue to drop.
- 30-Year Fixed-Rate. Down for the third week in a row to 3.81 percent (the lowest rate in three months) with an average 0.6 point.
- 15-Year Fixed-Rate. Down to 3.1 percent with an average 0.5 point.
- 5-Year Adjustable Rate. Down to 2.91 percent with an average 0.5 point.
With mortgage rates on the decline, it’s no surprise applications are on the rise. Total loan application volume recently climbed 9 percent. More homeowners are refinancing than purchasing – with refinancing accounting for 59.1 percent of all applications. Home refinances climbed 19 percent as purchases dropped 2 percent.
Now is the Time!
Whether you’re looking to refinance or buy – now is the time. United Faith Mortgage proudly offers unique programs not offered by most lenders. Get in touch with us today. Our loan officers are only a phone call away.