Freddie Mac recently reported that the 30-year fixed-rate mortgage averaged 3.45% during the week that ended February 6, 2020. That's a decrease of six basis points from the previous week, and the third consecutive week mortgage rates dropped.
The last time the 30-year fixed-rate mortgage was at this level was in October 2016, when the rate averaged 3.42%.
The 15-year fixed-rate mortgage also fell to 2.97%, the first time since 2016 that this rate dropped below 3%.
As you can imagine, the near-historic low mortgage rates, coupled with a strong economy, will continue to propel housing demand for the next several months.
Here in the Treasure Valley, with already limited housing supplies, prices are going to continue their ascent. A recent report by Realtor.com shows that this Spring may be the last affordable homebuying season in a while. Nationally, the U.S. saw affordability increase by 6%, with roughly 53% of available inventory being affordable to the median household income. Locally, only about 15% of the inventory share is accessible at the median household income.
If you're even remotely considering buying a home, the sooner you start looking, the better as there will be less competition for homes. However, as we march toward the Spring buying season here in the Treasure Valley, more homes will come on the market. Still, there will be increased competition for those homes, which may inflate prices further.
Unfortunately, immigration to Idaho is going to continue as people from other states are seeing better opportunities here. With the up-and-coming startup culture and bustling economy, Idaho and the Treasure Valley are seeing, this trend is going to continue and doesn't show signs of easing up anytime soon.
And with the epically low-interest rates, that's only going to continue to place strain on available inventory.