On Friday, February 28th the average 30-year fixed-rate mortgage clocked in at 3.37%, according to daily rate surveys from NerdWallet. This rate was down 38 basis points over the month and was the lowest 30-year rate on record since the survey began in mid-2016. This begs the question – have mortgage rates bottomed out, or will we see another rate drop this year?
According to some, rates on home loans are likely to drop even more if the Coronavirus outbreak worsens in the United States. Also, political instability can drive interest rates down, so it’s possible we may see another drop before the election, however given how low rates are today, it’s likely that the fed will increase rates in December.
Bottom line – there’s no telling what the future holds and mortgage rates are unpredictable. Today’s rates are the lowest they’ve been in years, and the arrival of spring means the Boston real estate market is about to flood with new listings in every price range. If you’re thinking of buying real estate in Boston this year, lock in a low rate now and start talking to your agent about what you’re looking for. Condos in Back Bay, The South End, The Seaport and other Boston neighborhoods don’t stay on the market long, so getting pre-approved and securing a great rate is the first step to finding a great home.