Since the United Kingdom shocked the world and voted in favor of a British exit from the European Union, mortgage rates have plummeted to historic lows reminiscent of the all-time low recorded in November 2012, with only a 17 basis point difference.
For the week of June 30, 2016, the 30-year fixed-rate mortgage is averaged at 3.48%, a decrease from last week’s 3.56% and last year’s 4.08%. The 15-year fixed-rate mortgage is averaged at 2.78%, decreasing from last week’s 2.83% and last year’s 3.24%.
According to the Mortgage Bankers Association, despite the plummet in rates, mortgage applications actually went down 2.6% from a week earlier.
Many experts believe this is only the beginning of rate drops, while others believe this decrease will be short lived. How long will these historically low rates last? Only time will tell.