Home buyers are in for a treat as rates have dropped prior to "big house hunting weekend." As per CNBC, the average rate on the 30 year fixed mortgage significantly decreased last Friday to just 3.75 percent. As per Mortgage News Daily, the mortgage rates used to hit above 4 percent earlier this month. Which meant that in just a span of a week or two, prices drastically dropped giving potential home buyers an early treat this year.
Matthew Graham, editor of Mortgage News Daily stated,
"Just when it looked like 2016's already impressive drop in rates might be running out of steam, we're starting the day with the biggest improvement of the year, thanks to the ongoing rout in equities and oil, this is made all the more impressive by the fact that lenders are typically more conservative on the Fridays before a three-day weekends."
Graham then added that this does not happen every so often as this can only happen a few times a year "We only see that happen a few times in any given year."
Though the housing market continually fluctuate in terms of pricing, the upcoming holiday weekend will pave way to more price decrease. CNBC then added that the Martin Luther King Day will play an influential role in the real estate market.
Nela Richardson, who is a real estate broker and a chief economist at the Redfin, stated that the decrease would only affect active home buyers,
"If you are in the market now looking, it does add a sense of urgency, there's a difference between being pulled in - if you're on the fence, it may or may not help, but for those active buyers, it absolutely affects them."
As per Investopia on the other hand, it is important to stick to your budget. Though the price may have dropped at it may be 3-5 times lower that it's actual mortgage cost, it is still important to buy only what you can afford.