If you have the means to buy a new home and are in the market for one, now's the perfect time to do it.
The average 30-year fixed rate mortgage dropped this week from 3.72% to 3.65%, its lowest point in 10 months. This makes six consecutive weeks that mortgage rates have dropped.
Despite the Federal Reserve's decision to raise interest rates at the end of last year, mortgage rates have continued to slip. Volatility in financial markets fueled by concerns of a global economic slowdown and the falling price of oil have made investors gravitate towards U.S. Treasuries, which has kept rates low for prospective home buyers.
Though it was speculated that the rate hike could come in March, Federal Reserve Chair Janet Yellen said market conditions have become less conducive to growth, which could point to a delay in the Fed's plans to raise the federal funds rate.
The average rate on a 15-year fixed rate mortgage also fell to 2.95%, down from 3.01% the previous week.
The Fed's reluctance to raise interest rates suggests the economic outlook isn't as rosy as some analysts and people in the media would have us believe. In addition, from what I can see, jobs still aren't abundant, wages remain stagnant, and many consumers are still pinching pennies wherever and whenever they can.
We can only hope that the economy will remain on the path to long-term growth.