Will Interest Rates Continue to Fall?

After the bonanza of interest rate cuts during 2019, many experts expected rates to remain low but not necessarily drop again. But last week, mortgage rates fell once more, according to NerdWallet. The 30-year, fixed-rate mortgage hit 3.37 percent, a record low for the survey, which started in 2016. Americans may jump into homebuying and refinancing to take advantage of the low rates, but experts say that the rates could dip even lower based on the stock market's performance.

Mortgage rates averaged 3.45% last week, but by Friday? Data shows they had dropped even more.

In fact, according to daily rate surveys from NerdWallet, the average 30-year, fixed-rate mortgage clocked in at 3.37% on Friday—down 38 basis points over the month. It was also the lowest 30-year rate on record for the survey, which kicked off in mid-2016.

The dip has made buying a home significantly more affordable for the average buyer. At the close of January, the monthly payment on a $200,000 mortgage was around $926, given current rates. Now, a buyer could get a $209,600 home for the same payment.

Rates have also opened the door for refinance-related savings. According to data from financial data firm Black Knight, there are about 11.1 million high-credit homeowners who could shave at least 0.75% off their mortgage rates right now. On average, they’d save just under $270 per month.

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