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From House Beautiful

As one of the most expensive purchases you can make, buying a house can be a daunting decision. But right now might be the best time to buy your dream home because mortgage rates across the country are currently at an 8-year low.



On Monday, the average interest rate on the 30-year fixed mortgage, one of the most popular types of mortgages, fell to 3.34 percent, according to Mortgage News Daily. Around this time last year, it was about 4.57 percent The 15-year home loan rate, another popular mortgage, is also lower than it was last year, falling from 4.14 percent to 3.09 percent.

“At no time in modern economic memory have mortgage rates been able to move significantly or aggressively lower than they are right now,” Mortgage News Daily Chief Operating Officer Matthew Graham said in an article analyzing the low mortgage rates.

Why are rates so low right now? According to CBS News, the Federal Reserve cut rates low three times last year during signs of economic weakness. It continues to keep the rates low, while inflation stays the same. "And once [banks] start to expect that, they're willing to lend money over the long run at lower interest rates," Bob DeYoung, an economist and business professor at the University of Kansas, told CBS.

Fears of coronavirus are also causing mortgage rates to fall by sinking stocks and boosting bonds. According to the the Wall Street Journal, the yield on the 10-year Treasury note, which serves as a benchmark for mortgages and other borrowing rates, fell to an all-time low today due to fears over the outbreak impacting the global economy.

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