Mortgage rates hit all time low
BATON ROUGE- Mortgage rates are at a national all time low at 3.4% on a 30-year fixed rate. The low rates come as the Federal Reserve continue to stimulate the housing sector.
"The rates have stayed historically low, which has allowed quite a few people to refinance, cutting their rates, or their term or their monthly payment, and sometimes they're able to do both and use that money elsewhere," said Patrick Michaelson with Prime Lending in Baton Rouge.
That's exactly what the Fed is hoping for, and exactly why Adam Clary decided to refinance his home.
"Once we knew how low the rates were and that we could face a significant reduction, we knew we would have to do it, regardless of what we would face up front, or what was going to be tacked onto the loan," said Clary. "It was kind of stupid not to do it basically, our mortgage payment a month is several hundred dollars less and hopefully it will save us a lot of money in the long run."
The financial industry recommend looking into the lower rates now, if you're serious about home ownership or refinancing.
"I don't think the rates are going to go unbelievably lower, but we've been in this rate environment for a long period, but we are historically low, but I couldn't even guess how long we will stay in this low rate environment," said Ron Moreau, Jr. with Campus Federal.