As Mortgage Rates Sink, Applications Rise

Mortgage applications are increasing as the rate falls.

As of the week of January 18, mortgage applications rose 8.8%. Last year, the mortgage rate averaged 3.66%. In December, the Federal Reserve raised rates for the first time in almost 10 years. Currently, the rate for a 30 year mortgage is 3.79%, and the rate for a 15 year mortgage dropped to 3.07%.

Homebuyers may see that their rates are low but they could be paying more for homes because of the scarcity of homes on the market right now. However, the low rates make this a great time to purchase a home.

From CNN