There has been a record drop in mortgage rates this week, this is due to the drop in burrowing cost which encouraged the people for refinancing and also opens doors for several refinance applications in the South Bay as homeowners are willing to take advantage of some of the best loan deals in nearly 40 years.
The 30-year National average interest rate for home loans was recorded as 4.98 % last week which fell to just 4.85% this week. That’s the lowest ever recorded figure for home loans recorded by the company which is backed by government and their database contains records form1971.This shows that this is the lowest average interest rate during the last 38 years. The last lowest rate was recorded in mid-January, which was 4.96%. Average rates are those for “conforming” loans, up to $417,000.
The expert’s opinion is that Mortgage Rates will remain low for the whole year. It will possibly provide a relief that was needed the most for the housing market.
Even in Silicon Valley which is an expensive area to buy a home, and in the last year bigger loans where needed to buy a home in that area, news of the low rates has increased the number of loan applications to a greater extent owing to make the local mortgage industry professionals more busy as they were the last year said.