Dropping oil prices and economic instability in Europe drove mortgage rates to their lowest levels in 18 months. The weekly average for a 30 year fixed rate mortgage reached 3.66% by the last week in January. Earlier in the month, President Obama announced a reduction in mortgage insurance rates on Federal Housing Administration (FHA) insured mortgages.
These two events have combined to reduce the price of a mortgage by more than 13% from a year earlier. So if you are in the market to buy a home or possibly refinance the home you already own, these developments may encourage to you move forward with your plans earlier than you may have expected.
See our 2015 Real Estate Market Outlook for the bigger picture on this year’s real estate market.
Article By: Tana Hubbard
Evolve Bank & Trust