If there were ever a prime time for home affordability, it’s now. In the aftermath of Congress passing the debt ceiling resolution, mortgage rates have gone down.
- The 30-year fixed mortage rate fell to 4.45% from 4.57%, according to the Mortgage Bankers Association.
- The 15-year fixed hit a record low of 3.52%.
- And the 5-year Treasury-indexed adjustable-rate mortgage (ARM) fell to a historic low at 3.18 percent, the lowest since 2005.
As a result of plunging rates, mortgage applications for purchases and refinances went up by about 7%, compared to one week earlier. However, refinance applications are down by about 30% overall compared to the same time last year. Some experts credit this to the nation’s unemployment maladies and slower than anticipated economic growth, looking forward to better results in Q3.