Week 8 brought good news for prospective homeowners across the country, as average flat mortgage rates for both fifteen and thirty-year mortgages posted a slight decrease. For the week ending February 24, thirty-year mortgages posted an average flat rate of 4.95%, down from an even 5.00% the week before. Not to be outdone, fifteen-year mortgages also posted a decrease in average flat rates, with the current week clocking in at 4.22%, down from 4.27% in week 7.

Decrease Unexpected in Some Quarters

The decrease took some analysts by surprise, since there was some speculation that rising gas prices and unrest in the Middle East would have an adverse impact on the economy, possibly forcing mortgage rates upward. Instead, the market responded with lower rates, possibly motivated by an upswing in the number of new mortgage applications in recent weeks. As it stands, there are no guarantees that the decrease is the start of a new trend that will move thirty-year rates further away from the 5.00% mark for any appreciable period of time.

The good news is that people who thought their chances of locking in a mortgage rate less than 5.00% were long gone now have a brief period of respite. Since there is no solid opinion on how long rates will stay at this level, the time to act is now. Make the most of the time and start talking with lenders today. With a little luck, you can get approved before the rates swing upward again and begin enjoying the benefits of having a lower mortgage rate.