Throughout 2016, the 30-year fixed-rate loans held an average of 3.65 percent which is the lowest it has been since 1971. However, towards the end of the year it rose to 4.32 percent. Thursday, Mortgage buyer Freddie Mac said that rate has now dropped to 4.20 percent.
The average for a 15-year mortgage has also dropped from 3.55 to 3.44 percent last week.