The plummeting U.S. stock market is giving potential homebuyers an unexpected boost, in the form of lower mortgage rates. The average rate on the popular 30-year fixed mortgage moved down decidedly Friday to 3.75 percent, according to Mortgage News Daily. It was above 4 percent just a week ago.
"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," said Matthew Graham, editor of Mortgage News Daily. "This is made all the more impressive by the fact that lenders are typically more conservative on the Fridays before a three-day weekends."
The rate moved an eighth of a percentage point lower overnight. That may not sound like much, but it is considered a huge move in such a short period.