For those looking to refinance their mortgage (or with children looking to purchase a new home) now may be a great time: the average 30-year, fixed rate mortgage now stands at around 3.56%, a three-year low. According to the Wall Street Journal, “as recently as November, the 30-year mortgage rate was 4.94%, a 7½-year high. The difference in rates between then and now would shave $182 off the monthly payment for a typical home sold in the U.S., given the median price of $280,800.”
One problem for younger generations looking to purchase their first home: a significant shortage of affordable, starter homes. That’s one reason why refinancing activity has jumped significantly in recent months, but existing home purchases continue to run below prior year levels.