{"id":51167,"date":"2016-06-23T08:31:29","date_gmt":"2016-06-23T15:31:29","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=51167"},"modified":"2020-10-06T17:08:16","modified_gmt":"2020-10-07T00:08:16","slug":"mortgage-rates-borrowing-is-cheap-and-likely-to-stay-that-way","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/mortgage-rates-borrowing-is-cheap-and-likely-to-stay-that-way\/","title":{"rendered":"Mortgage Rates: Borrowing is Cheap And Likely To Stay That Way"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Mortgage rates were little changed, <\/span><span style=\"font-weight: 400;\">averaging 3.56 percent from from 3.54 percent a week earlier. A year ago, a 30-year, fixed-rate home loan was 4.02 percent<\/span><span style=\"font-weight: 400;\">, according to <\/span><a href=\"http:\/\/www.freddiemac.com\/pmms\/\"><span style=\"font-weight: 400;\">Freddie Mac<\/span><\/a><span style=\"font-weight: 400;\">. \u00a0<\/span><br \/>\n<span style=\"font-weight: 400;\">It can\u2019t be said enough &#8212;\u00a0home loans are really cheap. Mortgage rates briefly ticked above 4 percent at the end of December but otherwise have been in the 3 percent range for almost a year.<\/span><\/p>\n<figure id=\"media-51168\" class=\"align-center\"><img decoding=\"async\" src=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2016\/06\/Picture1.png\" alt=\"mortgage rates\" \/>Source: Freddie Mac<\/figure>\n<p>Mortgage prices tend to follow Treasury yields, which have been trending down all year, too. Last week, the interest on 10-year Treasuries dropped to its lowest in four years on worries that Britain would vote to leave the European Union. When the political and economic outlook is uncertain, the world\u2019s money tends to flow into safe investments like U.S. bonds, including mortgages. That\u2019s what\u2019s happening now.<br \/>\n<span style=\"font-weight: 400;\">If voters across the pond approve <\/span><a href=\"http:\/\/www.nytimes.com\/interactive\/2016\/world\/europe\/britain-european-union-brexit.html?_r=0\"><span style=\"font-weight: 400;\">Brexit<\/span><\/a><span style=\"font-weight: 400;\"> &#8212; the \u201cBritish exit\u201d from the union &#8212; we can expect rates to fall even more, or at least stay super low. <\/span><br \/>\n<span style=\"font-weight: 400;\">So far, all this cheap borrowing has been good for U.S. homeowners and the housing market. <\/span><a href=\"https:\/\/redfin.com\/blog\/2016\/06\/the-housing-market-accelerated-to-its-fastest-pace-on-record-in-may.html\"><span style=\"font-weight: 400;\">Home sales <\/span><\/a><span style=\"font-weight: 400;\">reached a nine-year high in May, buyers are snapping up <\/span><a href=\"http:\/\/www.census.gov\/construction\/nrs\/index.html\"><span style=\"font-weight: 400;\">new construction<\/span><\/a><span style=\"font-weight: 400;\">, and architects report robust business, meaning more people are <\/span><a href=\"http:\/\/www.aia.org\/practicing\/economics\/index.htm\"><span style=\"font-weight: 400;\">renovating<\/span><\/a><span style=\"font-weight: 400;\"> or building. <\/span><br \/>\n<span style=\"font-weight: 400;\">In the long run, though, a Brexit would put a damper on the <\/span><a href=\"http:\/\/www.imf.org\/external\/pubs\/ft\/scr\/2016\/cr16169.pdf\"><span style=\"font-weight: 400;\">global economy<\/span><\/a><span style=\"font-weight: 400;\">. And the market boost from cheap home loans is minimized if only those few people with pristine credit can get them. Housing still has nagging structural problems. For now though, remember this chart.<\/span><br \/>\n&nbsp;<\/p>\n<figure id=\"media-51169\" class=\"align-center\"><img decoding=\"async\" src=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2016\/06\/rates-23june2016.png\" alt=\"mortgage rates\" \/><figcaption>Source: Freddie Mac<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Except for a blip in December, rates on home loans have held below 4 percent for nearly a year.<\/p>\n","protected":false},"author":13355,"featured_media":49290,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[8],"tags":[74,19],"coauthors":[],"class_list":["post-51167","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing-market-news","tag-mortgage-tips","tag-politics"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.4) - 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