In the past year, mortgage rates for conventional 30-year loans have dropped 0.75 percent. Now averaging just 3.73 percent according to Freddie Mac, interest rates are nearing their lowest levels of all time. These ultra-low rates mean that home purchasing power is increased, which is good news for those looking to purchase a home.

The experts at The Mortgage Reports posed the commonly asked question of “how much home can I afford?” Home values have risen approximately 4 percent nationwide over the last 12 months, but the 0.75 percent rate change means your average buyer now has 10 percent more purchasing power.

For example, a $400,000 home in January 2014 would now be valued at around $416,000. However, with today’s mortgage rates, a buyer could purchase a $440,000 home with no change in payments. The lower mortgage rates get, the more home buyers can afford.

Lenders have also been making it easier to get approved for a home loan, as more mortgages are getting approved than any other time this decade according to The Mortgage Reports. Low down payment mortgages are becoming more popular, especially with the new Conventional 97 loan available via Fannie Mae.

The Conventional 97 allows home buyers to make a just a 3 percent down payment at closing, which is even lower than the FHA loan minimum of 3.5 percent. If you are interested in getting purchasing a new home, now is the time to act, especially with rates for loanDepot home loans being so low.