Mortgage rates have gone mostly down since the beginning of 2019 for multiple reasons: Trade tensions with China, a perception that the economy is slowing, and persistently low inflation. The Federal Reserve cut short-term interest rates by a quarter of a percentage point in July and again in September.

 

While lower short-term interest rates don’t immediately affect long-term mortgage rates, they do compel longer-term rates to fall over time, which is what we are starting to feel here and now in the 4th quarter—making it a great time to either lock a rate as a buyer or sell a house to a qualified buyer who can afford a little more.

 

The latest rates are knocking on “4’s” door again (hey, I had a mortgage at 13% in 1985, so don’t be greedy), with the 30-year fixed at 3.875% for purchases up to $726,525 and 4% for loans up to $3,000,000. A 15-year fixed rate of 3.5% applies up to $726,525, which is also a great product to use when re-fi’ing an existing loan at a higher rate and/or longer term.