Falling oil prices are providing significant relief for drivers at the gas pumps, a trend that is expected to continue in the first quarter of 2015. But the lower price of oil may provide another indirect form of relief through lower mortgage rates.
Oil prices have been falling all year, and entered a freefall since the end of the summer. Coincidentally, 30 year fixed mortgage rates were posted at an average of 4.06 percent last week. The Mortgage Bankers Association says the 30 year plan is the lowest posted rate in 18 months.