This week, mortgage rates sank to their lowest level of the year, but still much higher than where they were six months ago. As of Thursday, the 30-year fixed-rate average dropped to 3.95 percent. The 15-year fixed-rate average fell to 3.19 percent. Both rates are averaging 0.5 points. There was a sharp drop in Treasury yields last week that sent mortgage rates to their lowest levels since mid-November 2016.

The movement of long-term bond yields tends to be a good indicator of where mortgage rates are headed.  According to, the Federal Reserve will continue to raise short-term rates, and in December, it will start to shrink its balance sheet. This will send mortgage rates higher, sooner or later.

With mortgage rates below four percent and summer around the corner, inventory should be increasing, while mortgage rates remain stable for the next few months. If you have been looking, now is a good time to get your pre-approval! Happy Hunting!