Mortgage Rates Drop to Lowest Level in Over a Year

• October 16, 2014

by Lark Turner

On Thursday morning, Freddie Mac reported 3.97 percent with an average 0.5 point as the average on a 30-year fixed-rate mortgage, the lowest level for long-term rates in over a year and a sharp drop from last week’s 4.12 percent. Rates haven’t been lower since June 2013.

Interest rates have been uncharacteristically low for much of 2014, and continue to sit below 2013 levels, despite predictions that they would rise in a strengthening market. They were averaging 4.12 percent a year ago.

Freddie Mac’s chief economist Frank Nothaft said in a release that Americans could thank Europe for the low rates.

“Mortgage rates were down sharply following the decline in the 10-year Treasury yield for the second straight week. Rates are at their lowest levels since June 2013 amidst continued investor skepticism regarding the precarious economic situation in Europe.”

The UrbanTurf Mortgage Rate Disclaimer: The rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate.

This article originally published at http://dc.urbanturf.com/articles/blog/mortgage_rates_dip_below_4_for_first_time_in_over_a_year/9106