Mortgage rates in the US declined, giving home buyers a crack at the lowest borrowing costs in more than three years.
The average rate for a 30-year fixed mortgage was 3.45 percent, down from 3.51 percent last week and the lowest since July 2016, Freddie Mac data showed Thursday. The 15-year average slipped to 2.97 percent from 3 percent.
Fears of a coronavirus pandemic have fueled a global rush for safe assets, sending the Treasury yields that guide mortgage rates sliding. That provides a window for homeowners looking to refinance into less expensive loans, and helps make purchases more affordable.
“The combination of very low mortgage rates, a strong economy, and more positive financial market sentiment all point to home purchase demand continuing to rise over the next few months,” Sam Khater, Freddie Mac’s chief economist, said in a statement.
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