Mortgage Rates Down In May

Mortgage Rates Down Home Sales Up

Mortgage RatesMortgage rates have been steadily falling for a month now, and last week they hit record lows.  According to Freddie Mac, a mortgage purchaser, the rate on the 30-year loan declined from 3.79% to 3.78% last week.   These are the lowest levels seen since the 30-year mortgage emerged during the 1950s.  Lenders have recently seen an increase in homeowners refinancing into 15 year fixed mortgages, where the average rate is holding steady at the record low of 3.04%.

Since December of last year, 30-year mortgage rates have stayed below 4%.  Many experts believe the historically low interest rates have kept the struggling housing market afloat.  In fact, home sales rose in April, to levels not seen in nearly 2 years.

In addition to affordable mortgage rates, an improved job market has more and more people getting off the sidelines and into the housing game.  Businesses have added over 1 million jobs since January and unemployment has fallen 1% since August, down from 9.1% to 8.1% in April.

Nevertheless, the pace of home sales continue to be well below healthy levels and it could possibly be years until the housing market is completely recovered.  Even with the low mortgage rates, lots of potential buyers are having troubles qualifying for a loan or do not have the larger down payments demanded by lenders. The fear that home prices could decline further are also keeping some buyers on the fence.

For more information on mortgage rates, please contact me here.

 

 

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Category : Blog &Mortgage & Loan

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