After reaching the highest rate levels of the year two weeks ago, mortgage rates have once again dropped and are now the lowest they’ve been since the beginning of the year. Freddie Mac reports that the average current mortgage rate for a 30-year conventional fixed rate loan is sitting at 3.78 percent, with 15-year, FHA and VA loan rates significantly less.

The Federal Reserve said last week that the Fed Funds Rate will stay near 0 percent longer than many financial experts had thought, which means inflation rates and mortgage rates will stay lower longer. Lower interest rates also mean that more U.S. homeowners are now eligible for a refinance.

Recently mortgage approvals have been on the rise, which has also helped increase the number of conventional mortgage refinances being closed. Freddie Mac estimates that homeowners who refinanced last year will save over $5 billion in interest costs within the first year.

Ellie Mae says that refinances now account for 60 percent of all home loans closed, which is up significantly from 40 percent a year ago. Loans are also closing faster, with the average refinance taking just 36 days to close.

Many homeowners are switching to a 15-year loan term when refinancing to take advantage of much lower interest rates, which can be found well into the 2 percent range. The total amount of interest paid with a 15-year loan is also substantially less than a typical 30-year mortgage - nearly 65 percent less according to the experts at The Mortgage Reports.

Current mortgage rates are also helping home sales in the U.S., with the national home supply at 4.7 months according to the Existing Home Sales report. The Mortgage Reports says that this is the lowest level in the last two years, meaning demand for homes is high.

Whether you are buying a new home or refinancing your current one, now is a great time to apply for a mortgage. Approval rates are higher, interest rates are lower and buying power is high, which are all great reasons to start applying today. Find out more about current mortgage rates at Best Rate USA and find the best type of mortgage or refinance for you.