Average U.S. rates on fixed mortgages fell to fresh record lows this week, a trend that has helped the housing market start to recover this year.
Mortgage buyer Freddie Mac says that the average rate on the 30-year loan dipped to 3.34 percent, the lowest on records dating back to 1971. That's down from 3.40 percent last week and the previous record low of 3.36 percent reached last month.
The average on the 15-year fixed mortgage also dropped to 2.65 percent. That's down from 2.69 percent last week and also a new record.
The average rate on the 30-year loan has been below 4 percent all year. It has fallen further since the Federal Reserve started buying mortgage bonds in September to encourage more borrowing and spending.
Low mortgage rates have helped boost sales of newly built and previously occupied homes this year. Home prices are also increasing, and builders are more confident and starting work on more new homes.
If you are in the market for a home at the lake please contact the Spouses Selling Houses team. Until next time! Ebbie :)
Before you jump into the housing market, you may be wondering if we could ever have another mortgage crisis. While something like that is nearly impossible to predict, making an informed choice means looking backwards. Until you understand exactly what cause America's mortgage crisis, you won't be able to decide if investing in a home right now is right for you.
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