Buying and selling real estate in the communities of Long Island
Mortgage rates hit new lows
Mortgage interest rates hit new all-time lows again this week.
The average rates on both the 30-year and 15-year fixed home loans slid lower this week than ever before, according to a weekly survey by Freddie Mac. The average interest rate for a 30-year fixed-rate mortgage was 3.56 percent with an average 0.7 percent, down from 3.62 percent a week ago.
The dip may seem small, but that half-point could nudge some would-be borrowers into qualified territory and improve the purchasing power of home buyers, says Eileen Anderson, senior vice president with the Community Development Corp. of Long Island, a certified HUD-counseling agency. “For the person who is looking to buy, any time a rate drops, it’s an asset to them, because it gives them more buying power — or that difference between qualifying or not qualifying due to ratios,” she says.
Those looking to refinance could also see a benefit, provided they are not under water, she says. For a 15-year fixed-rate loan, a popular choice for refinancing, the average declined from 2.89 percent a week ago to 2.86 percent with an average 0.7 point this week. The agency has resumed one-on-one counseling and can help with refinancing, Anderson says. “If people need help understanding their mortgage or the new refinancing options, we have resources and have assistants. Let them explore every option. This is a good time to do it.”