Freddie Mac reports that the average rate on a 30-year fixed mortgage fell to 4.06% this week, its lowest since January 2018 and nearly a quarter-point lower than a week earlier, representing the largest drop in over a decade.
The Federal Reserve’s decision to halt interest rate increases and investor concerns about the expected rate of economic growth for the rest of 2019 have contributed to the decline in mortgage rates.
Lower mortgage rates are expected to bolster the spring selling season, with many prospective buyers who were sidelined after rates jumped re-entering the market. Mortgage applications increased 8.9% last week, according to the Mortgage Bankers Association. Refinancing applications were also up 12% over the past week.
