2015 Mortgage Rates Give 10% Boost To Home Buyer Purchasing Power
In January 2014, the average 30-year fixed rate conventional mortgage rate was 4.52 percent. This January, according to Freddie Mac, the average 30-year rate averages 3.73%.
Over the course of 12 months, 30-year interest rates have dropped 75 basis points (0.75%).
The three-quarter-point annual decline is not the largest in recorded history, but it’s significant — especially with interest rates near their lowest levels of all time.
Sub-4 percent mortgage rates boost home affordability and home purchasing power; and for homeowners using FHA loans and VA loans to finance a purchase, that purchasing power is extended.
FHA mortgage rates are averaging 0.25 percentage points less than a comparable conventional loan, and VA mortgage rates are averaging 0.375 percentage points less.
It’s an excellent time to buy or refinance a home. As compared to history, today’s huge gains in purchasing power helps you to buy more home for less money than ever before.
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