Applications Surging for 15-Year Mortgages as Rates Plummet
After setting its 14th record low in six months, 15-year rates average about a half percentage point less than the 30-year fixed-rate mortgage.
A new year, a new record low mortgage rate. Despite a full percentage point decline in rates over the past year, housing affordability has decreased because these low rates have been offset by rising home prices.
However, the forces behind the drop in rates have been shifting over the last few months and rates are poised to rise modestly this year.
The combination of rising mortgage rates and increasing home prices will accelerate the decline in affordability and further squeeze potential home buyers during the spring home sales season.
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