Mortgage rates fell for the first time in four weeks, averaging 3.60 percent, down from 3.66 percent. A year ago at this time, the average 30-year, fixed-rate home loan was 4.04 percent, according to Freddie Mac.
Rates on home loans have been below 4 percent all year and have averaged less than 3.7 percent for the past 10 weeks, making borrowing cheaper for homeowners or potential homeowners.
Federal Reserve Chair Janet Yellen signaled on Friday that her team, out of an abundance of caution, isn’t likely to raise their benchmark rate when Fed policymakers meet next week- good news for anticipating borrowers. “Both home sales and construction have been gradually improving,” she said. “Housing has been supported by low mortgage rates, and while mortgage credit is still difficult to obtain for households with low credit scores or hard-to-document income, those with good credit histories are generally able to borrow at very favorable terms.”
For now, the U.S. housing market is reaping the benefits of cheaper mortgage rates, but it will likely be on the uptick again soon. Is 2016 the year you’ll buy? We’ll be here.