Mortgage Rates Drop Below 4% for First Time Ever

From Fixed mortgage rates have fallen to below 4 percent for the first time ever.

The average rate on a 30-year fixed mortgage fell to 3.94 percent this week, Freddie Mac said Thursday, from 4.01 percent the prior week, the previous low. The average rate on a 15-year fixed loan dipped to 3.26 percent, also a record.For those who can qualify for the historically low rate, it’s an extraordinary opportunity to buy or refinance.

Yet low rates have done little to boost home sales or refinancing. Many people don’t have enough cash or home equity to get a loan, or they are reluctant to take the risk in this market. Others have already refinanced because the average rate on the 30-year loan has been below 5 percent for most of the past year.

The Associated Press contributed to this report.