The year 2015 has kicked off with some great news for people looking to get mortgage to buy a new home. Mortgage rates have further depreciated, making it their 20-month lowest since 2013 in May. With the average thirty-year fixed rate mortgage hovering at 3.73 percent, now is the best time to get your home and avoid paying for higher prices in the following months.
Mortgage rates reach their 20-month low
This month, rates on 30 year fixed rate mortgages have reached a 20 month low. Rates have not been this low since May 2013, and the fall of mortgage rates have also brought ten year Treasury yield 2 percent beneath for the first time in the last three months. The chief economist of Freddie Mac, Frank Nothaft has stated that the Fed minutes may indicate that there is speculation regarding the first hike of mortgage rates. The ongoing discussion between many housing economy specialists has revealed that the predictions for this year is that rates will probably start to increase within the following months and that they will most likely reach 4% or even 5% by 2016.
Mortgage rates on 30 year fixed rate loans
This month, rates on thirty year fixed rate mortgage loans have averaged around 3.70%, representing a 0.6 point drop from the previous month. The average rate for a 30 year fixed rate mortgage has not been this low in 20 months, when they were hovering at 3.59% on May 23 2013. This time last year, rates on 30 year fixed rate mortgages were at 4.51%.
15 year FRMs
Also, this month rates for 15 year FRM loans had an average of 3.05%. This represents a drop of 0.5 points from the 3.15 percent from the previous month. This time last year, rates on 15 year fixed rate mortgages were 3.56 percent.
1 year ARMs
The 1 year adjustable rate mortgages had an average of 2.39% this month, dropping 0.4 points from the previous month’s 2.40% average. This time last year, the rates were averaging 2.56%.
5 year hybrid ARMs
This month, 5 year hybrid adjustable rate mortgage rates averaged 2.98 %, marking a half a point difference from last month when it averaged 3.01 percent. The same time last year, 5 year hybrid adjustable rate mortgages rates averaged 3.15 %.
Reasons to get your new home now
If you were planning to wait for a few more months to get your new home, then you should reconsider and try to purchase it now. With rates being at their 20-month lowest and predictions from housing economy experts that rates on all mortgages will start to rise in the next year, now is the best time to take advantage of low interest rates and save money on your monthly mortgage rates. San Diego home prices are also expected to increase over the following months, so you should get your new home now while prices and mortgage rates are still affordable.