Average mortgage rates have continued to decline to historically low rates! 30 year fixed rate loans at 3.31% and 15 year fixed rate loans at 2.61% . These low rates have helped spur buyers into action.
Mortgage Rates Hit Historic Lows
Apr 25, 2013 By:
The average rate on a 30-year fixed mortgage continued its steady decline, falling to 3.4%, according to the latest survey by mortgage buyer Freddie Mac. Down slightly from 3.41% a week ago, rates for 30-year fixed loans continue to creep closer to 3.31%, the historic low achieved in November.
Low mortgage rates have spurred homebuyers into action, a trend that is expected to continue as the housing market becomes increasingly competitive. Illustrating the renewed interest in the housing market is the number of home sales during the first quarter. The 424,000 new home sales proved to be the strongest quarterly showing we have seen since the Q3 2008.
Those who qualify for a 15-year fixed-rate mortgage will be happy to hear that the average for that particular type of loan hit a record low of 2.61% this week, down from 2.64%. The previous record low on a 15-year fixed rate of 2.63% was achieved in November, which, at the time, proved to be the lowest since 1991.
Whether fixed-rate loans continue to trend downwards could hinge on the findings in the 1st Quarter Gross Domestic Product, which should provide a good measure of growth or contraction in the U.S. economy, says mortgage expert Al Bowman:
I expect this report to cause sizable movement in the financial markets Friday and therefore the mortgage market also. Analysts are expecting it to show that the economy grew at an annual rate of 2.9%, which would be a much quicker pace than the final quarter of last year. A smaller increase would be considered good news for mortgage rates. But, a stronger than expected reading would almost certainly cause stock prices to rise and bond prices to fall, leading to higher mortgage rates tomorrow morning.Besides the 15-year fixed, the average rate on a 5-year adjustable-rate mortgage also achieved an all-time low, falling from 2.6% to 2.58% week-over-week. The 2.58% rate marks the lowest rate on a 5-year ARM since 2005. Additionally, the 1-year ARM fell slightly to 2.62% in the latest week, down from 2.63%.
In the latest Mortgage Rate Trend Index by Bankrate.com, 91% of experts and analysts polled believe mortgage rates will either continue to tick downwards or remain unchanged over the next week, with the majority voting for the latter
Source: http://www.realtor.com/blogs/2013/04/25/mortgage-rates-hit-historic-lows/
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