The 30-year rate fell to 3.45%, at that will boost the housing market, as spring approaches.

According to the Wall Street Journal, the 30-year fixed-rate average fell to 3.45%, (data by Freddie Mac) down from 3.51% the previous week and 4.41% at this time last year. The average rate for a 15-year mortgage, also dropped to a three-year low at 2.97%. In June, it stood at 3.28%.

But home prices nationwide have skyrocketed in recent years, so the lower mortgage rates might not be enough to enable owners to buy their first homes. They also reflect concerns about the global economy.

Low mortgage rates did help push home sales to a yearly high mark in December, when the country saw 5.54 million home sales for a 3.6% increase from November. The lower rates have also spurred several refinancing, with the volume of applications increasing by 15 percent from the prior week to hit their highest mark since June 2013, according to recent data from the Mortgage Bankers Association.

Fannie Mae chief economist, Doug Duncan, told the Journal that the low mortgage rates could be good for existing and prospective homeowners.

“It’s very much a historical opportunity for folks who have an existing mortgage to refinance and for credit-qualified people to lock in a low rate,” he said. [WSJ] —

Eddie Small The RealDeal