15-year mortgage rates fell to lowest level since February

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After fluctuating from 2.47 to 2.48 percent for a month average rating on 15-year fixed mortgages fell this week to 2.44 percent in the latest Bankrate study. This is the lowest mortgage interest rate for 15 years since February.

Since the start of the coronavirus pandemic mortgage rates remained consistently low, which led to a wave of refinancing and a rush in home purchases across the country.

For many buyers and refinancers, these low rates have made 15-year mortgages a great option.

Rates on 15-year loans are generally lower than on 30-year mortgages, and with less time to complicate, they almost always save borrowers significant money in interest. But you have to pay for this in higher monthly payments. With a $ 300,000 loan, a 15-year-old mortgage owner can save about $ 100,000 in interest overall compared to a 30-year loan, but the monthly payments will be hundreds of dollars more.

It is unlikely that this string of low rates will last much longer. Experts predict that 2021 will end with higher rates. However, the immediate picture is less clear. In Bankrate weekly survey, respondents were mostly divided over whether rates will stay the same or rise.

“The Fed may not be thinking about cutting back on asset purchases, but they are thinking about talking about it. That will be enough to scare investors a little, ”said Greg McBride, chief financial analyst at Bankrate.

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