Mortgage rates have dropped again, and this time it's not the popular 30-year fixed rate, but the 15-year. This is great news. Why? Because these rates continue to show support for housing affordability. The average rate of the 15-year mortgage hit a record low of 2.56% this week
, down from 2.61% the previous week, according to Freddie Mac. These rates provide a good indicator to the spring market, as it shows a boost in the overall economy.
"Residential fixed investment added to overall economic growth over the past eight consecutive quarters and contributed more than 0.3 percentage points in growth over the first three months of this year," he said. "[N]ear record low mortgage rates should further drive the housing market recovery over the near term." said Frank Nothaft, Freddie's chief economist. Not only do low rates help new buyer demand, but also existing homeowners, even those who aren't refinancing. Additionally, these affordable rates will boost home prices. "Near record low mortgage rates should further drive the housing market recovery over the near term," says Nothaft.