Real Estate
Why Mortgage Rates Are Falling — And What Buyers Should Do
Find out if it's time to buy in your neck of the woods. [SPONSORED]
With mortgage rates at the steepest decline we've seen in weeks, more potential buyers are eager to bid on homes right now — and for good reason. Homebuyers can get great mortgage rates compared to earlier this year, and they can find attractive refinance deals, too.
This week, the average for the benchmark 30-year fixed-rate mortgage rate fell 0.06 percent since last week in Bankrate’s weekly survey of lenders. The rate, at 4.04 percent, fell back to the same level seen three weeks before and is lower than the five-week average for November which was 4.07 percent.
Basically, buyers should strike while the iron's hot. But why exactly are mortgage rates falling?
Compare Mortgage Rates In Your Area Right Now
Mortgage rates rise and fall with the yield of the 10-year Treasury note, which has been relatively flat in recent weeks as investors are waiting to see what happens to the tax plan in Congress.
But with many expecting an increase in the federal funds rate in the coming weeks, you can likely expect mortgage rates to rise further down the road, too. Outgoing Federal Reserve Chair Janet Yellen said Wednesday that “gradual increases” in the federal funds rate are expected as the economy continues to grow.
Knowing where mortgages rates are now and what the experts are expecting to come, homeowners and potential home buyers can get a free monthly estimate with Bankrate's mortgage calculator. Then take a look at local mortgage rates in your area below to score the best deal.
Check out homes for sale in your town:
Photo: Matt Cardy/Getty Images
