Good news for home builders and homebuyers alike: The housing market rang in the new year with mortgage rates about 80 basis points lower than at the start of 2019. Even better, these low rates that have bolstered sales across the nation are expected to continue, and experts at Realtor.com think this may spark an earlier buying season. Say goodbye to those fairly dead winter months of past—January is the new April.
The new decade has kicked off with a fairly stable interest-rate environment for home loans.
Similarly, the 15-year fixed-rate mortgage fell three basis points to an average of 3.16%, according to Freddie Mac. The 5/1 adjustable-rate mortgage, meanwhile, increased one basis point to an average of 3.46%.
Overall, mortgage rates started off 2020 roughly 80 basis points lower than they were at the start of 2019. “The stability is welcome news after the interest rate turbulence of the last year, which caused a slowdown in the housing market and other interest rate sensitive sectors,” said Sam Khater, Freddie Mac’s chief economist.