Mortgage Rates Hit a Low, Sparking Homebuying Excitement
So, guess what? Mortgage rates just plummeted for the sixth week in a row, and that’s got everyone buzzing in the housing market. If you’ve been considering buying a home or refinancing your existing mortgage, now might be the perfect time to jump in!
What’s Happening with Mortgage Rates?
The average contract interest rate for a 30-year fixed mortgage fell to **6.67%**, down from **6.73%**. This drop is significant because it’s the lowest rate we’ve seen since October last year. Even though the rates are still a bit higher compared to a couple of years ago, any decline is welcome news for buyers and homeowners looking to refinance.
Applications on the Rise!
The drop in rates seems to have sparked a loan frenzy:
- Applications for refinancing surged by **16%** from the previous week and are up an amazing **90%** from the same week last year.
- Mortgage applications for purchasing homes jumped **7%** week-over-week, which is actually **4%** higher than this time last year.
Joel Kan, an economist at the Mortgage Bankers Association, pointed out that as we gear up for the spring homebuying season, activity is ramping up across the board. He noted a **11%** increase in government purchase applications, thanks in part to even lower rates for FHA loans, now at **6.34%**.
The Bigger Picture
What’s really interesting is the average loan size for purchases has hit a record high of **$460,800**—the highest since surveys began in 1990! It’s clear that buyers are still willing to invest in property even with today’s rates.
So, as we kick off this spring buying season, it looks like there’s plenty of energy in the housing market. Of course, rates can fluctuate, especially with key economic reports like the Consumer Price Index coming out, which can send rates in either direction.
Feeling the itch to dive into real estate? Whether you’re ready to buy or just exploring your refinancing options, it’s a good time to start thinking about how these changes could benefit you! Happy house hunting!
