Dive Brief:
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The new year began with a drop in mortgage interest rates to 3.85% for 30-year fixed loans, according to Bankrate.com’s weekly national survey.
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The interest rate for 15-year-fixed mortgages dipped to 3.16%. Adjustable-rate mortgages also fell.
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A year ago, the interest rate on a 30-year fixed mortgage was 4.64%, according to Bankrate.com. For a $200,000 loan, the monthly payment was $1,030.08. At this week’s rate, the payment on a loan that size would be $937.62.
Dive Insight:
Bankrate.com analysts attributed the falling interest rate to “jittery” financial markets that are responding to a decline in oil prices—which some say are a sign of a weak global economy.
Still, like all economists and industry analysts, Bankrate.com is predicting an interest rate hike in 2015.