Mortgage rates have dropped by nearly half a percentage point following the collapse of Silicon Valley Bank. This is great news for those looking to purchase or refinance their home, as it means they can take advantage of lower interest rates and potentially save thousands over the life of their loan. But how low will mortgage rates go?
The answer depends on several factors, including economic growth, inflationary pressures, and global market conditions. If these remain stable or improve, then we could see further declines in mortgage rates over time. On the other hand, if any major shocks to the economy cause instability in financial markets then this could lead to an increase in interest rate levels again.
It is also worth noting that while current mortgage rates may be attractive compared with recent years’ highs – they remain historically low overall when you consider long-term averages since 1971 (when Freddie Mac began tracking them). So even if current trends continue downward, there is likely only so much room left before hitting rock bottom once more! In conclusion – while it looks like good news now for those seeking mortgages – no one knows exactly how far down these historic lows will go just yet!