PR Newswire and Susan McGalla report, interest rates on thirty year fixed rate mortgages dropped again to an average rate of 3.66 percent which is the third straight week of rate drops. This is the lowest average rate since mid-2013 when interest rates began to recover based on speculation regarding what the Federal Reserve would do in terms of raising interest rates. The average rate for a fifteen year mortgage, which many homeowners choose who are looking to refinance their home choose is now below 3% which is an attractive rate for many new homeowners.
Bond yields have also hit record lows and mortgage rates tend to follow the treasury rate yields closely, with the ten year treasury rate now below 2%. Adjustable rate mortgages are also at record lows with the rates down below 3 percent for 30 year ARM mortgages.
These lower mortgage rates are currently attracting increased buying opportunities for home buyers and there has been a related surge in the number of applicants for mortgages as a result. Applications for mortgages were at their highest level last week in the past six years according to the Mortgage Bankers Association, which has further supported home prices on the market.