U.S. Mortgage Rates Are Reaching Record Lows

Written By Kristina Kennedy-Aguero | June 20, 2019 | Published in Real Estate Market Trends
2019%2f06%2f19%2f17%2f25%2f23%2ff9226adc 09fc 46cb 87ac c308e2c7d7d6%2fus%20mortgage%20rates%20are%20reaching%20record%20lows

A report recently released by mortgage loan company Freddie Mac revealed that the 30-year mortgage rate is currently at 3.82 percent, roughly the lowest in two years. According to Market Watch, this figure is a 0.8 percent decrease compared to a year ago. The fixed-rate average on a 15-year mortgage rate was reported at 3.26 percent in the first week of June, a 0.02 percent decrease from the previous week’s figure and a 0.81 percent drop from the same time last year. This rate is at its lowest since September of 2017, which is great news for homebuyers. Now is the right time to purchase a home, as these rates may start to rise again in the near future.

Short-term mortgages had a 3.51 percent interest rate at the beginning of this month, which is a 0.32 percent year-over-year decrease. Last November, when rates hit a high of almost 5 percent, mortgage applications fell to a four-year low. But the current lower rates have caused a huge increase in applications as more potential homebuyers are deciding to take advantage of this opportunity. According to the Mortgage Bankers Association, the first week of June reported a 1.5 percent spike in the market composite index and a 10 percent increase in all home purchase mortgage applications. In May of 2019, mortgage applications by new homebuyers rose a massive 20.1 percent over the same time last year. The average size of new home loans decreased by nearly 3 percent year-over-year, indicating that prices are now leveling off after hitting record peaks. The average new home loan in April was $338,745, and in May this figure fell to $330,311.

The Real Deal reported that the continuing drop in mortgage rates may be due in part to the increase of tariffs on Mexican goods. This caused some market investors to shift their money from stocks to bonds, and as mortgage rates are linked to the bond market, the decline in rates continued. With an easing of the tensions about trade with Mexico this week, the market stabilized with little changes in last week’s figures. However, a stock market rally could occur depending on what the latest employment report reveals, which could send rates back up again.

As mortgage rates now stand at a historic low, first-time homebuyers and current owners refinancing existing mortgages stand to gain the most from taking advantage of this. But move-up buyers have many other figures to take into consideration, such as the recent changes in the tax code, higher property taxes, and affordability. Additionally, many homeowners who purchased their properties after the housing crisis have a lower mortgage rate than that on offer today. This means that fewer people are moving to larger or more expensive homes, so there is a shortage of properties available to first-time buyers. Although property prices remain quite high, now is still a good time to purchase a home, as mortgage rates may start to rise again. To take advantage of the market’s current state, check out active listings in the NYC area on the Elegran sales page.

Blog Archive


This information is not verified for authenticity or accuracy and is not guaranteed and may not reflect all real estate activity in the market. © 2021 REBNY Listing Service, Inc. All rights reserved. RLS IDX Data display by Elegran LLC. IDX information is provided exclusively for consumers’ personal, non- commercial use and that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

Elegran LLC may or may not be the exclusive listing agent of the properties being displayed on Elegran.com. All data displayed on Elegran.com is presented for informational purposes only and should be independently confirmed by all customers. All Information is compiled from both public and private sources including, but not limited to the RLS, MLS and ACRIS; each of which is assumed to be reliable. All information displayed is subject to errors and omissions regarding apartment specifications and final sale prices, and further, any unit listed may have had its listing withdrawn without notice subsequent to such information being compiled. No representation is made as to the accuracy of any description (ie: listing, close sale data, and/or building description) of any building or individual unit. All measurements and square footage are approximate and all information herein should be confirmed by customer and/or their attorney. Elegran LLC, its members, affiliates, and contributors adhere to New Your City, New York State, and United States Fair Housing Laws.