Real Estate Update: Mortgage Rates Hover Near Record Lows
By lipply on Jun 18, 2010 in Uncategorized
Home loan rates continue to remain highly affordable amid heightened volatility in the bond markets. According to figures recently released by home financing giant Freddie Mac, U.S. mortgage rates continued to hover at or around record lows, with a 30-year fixed rate mortgage at half a percentage point lower than this time a year ago.
After staging a demonstrable recovery in the weeks before, demand for home loans plummeted to reach 13-year lows last month as buyers raced to secure a homebuyer tax credit set to expire April 30. Analysts acknowledge that the decline is likely only temporary, and attribute spring housing market growth to the credit.
“The economy grew at a slower rate than originally reported in the first three months of the year, according to the Bureau of Economic Analysis, which suggests inflation will remain tame in the near term,” said Freddie Mac chief economist Frank Nothaft. “As a result, mortgage rates held at historic levels this week.”
The housing market is widely expected to be on a gradual road to recovery because of affordable financing options and low home prices. Up only 0.01 percentage points from the week before, 30-year fixed mortgage rates averaged 4.79 percent in the week ended June 3, making rates a half-point lower than a year before.
Reaching an all-time low of 4.71 percent this past December, 30-year fixed mortgage rates remain largely unchanged. Freddie Mac has tracked 30-year mortgage rates since 1971, releasing weekly figures.
Similarly, rates for 15-year fixed-rate home mortgages set a new record low of 4.20 percent. The new low is far below the 4.79 average percentage rate of a year prior. The home company has tracked 15-year rates since 1991.
Eric Bramlett is the broker & co-owner of One Source Realty, a boutique Austin real estate company. Eric currently manages his agents & works with select buyers & sellers. Eric specializes in Austin condos for sale.
10 Comment(s)
By Bill on Jun 21, 2010 | Reply
Well put. The buyers here in Hilton Head Island who are well qualified are able to get some amazing deals on property at record low rates. Looking out 5 year or so this should prove to be a pretty positive investment for those folks in this position.
By Alex Cortez on Jun 21, 2010 | Reply
Great info. Buyers on the fence need to realize that with today’s near record-low interest rates they have more purchasing power. And with the market facing positive economic signals, we could be at the beginning stages of a real estate recovery.
By Laguna Beach Real Estate on Jun 23, 2010 | Reply
Home loan rates continue to remain highly affordable amid heightened volatility in the bond markets.
By Taylorsville Utah Real Estate on Jul 1, 2010 | Reply
This is a good update of what’s going inside the market of real estate… Seeing this new information gives you ideas that market will be more positive in the coming years… Good Post!
By Selling Ogden Utah Homes on Jul 17, 2010 | Reply
This is the time that most home buyers are waiting for that mortgage rates will hit or even equal its all time record low. When that happened as expected home buyers will increase as well as home sales that might help our struggling market recovered.
By Cedar Park Owner Financed Homes on Jul 19, 2010 | Reply
Great post. I agree with Bill. Folks who are in the position to and can buy now while taking advantage of these extremely low rates will be sitting in a very good position in the future.
By Tasha on Jul 21, 2010 | Reply
May was a great month in Dallas- with the rates low and the tax credit many people took advantage of them. June rolled through and people were still taking advantage of the low rates- buying houses and real estate alike. People who are just investing in real estate should be highly rewarded in the next few years.
By Curtis Reddehase on Jul 21, 2010 | Reply
I know it takes jobs too, but the low rate seems like it would spur more buyers than what we have seen. no complaints our numbers are looking better overall.
By Palmdale homes for sale on Jul 22, 2010 | Reply
The low interest rates are great for the market and in the long run, are way better than the tax credit in savings. I hear at the office that the market is going to get worse again,but everyone else believes it’s getting better. I’m choosing to stay positive and siding with those who think we are going to stabilize.
By Pittsburgh Real Estate on Aug 5, 2010 | Reply
Forget about selling homes to clients, these low rates are making *me* want to invest. It’s hard seeing all these great properties and knowing rates are so low. I have to remember that I am in the business of selling real estate, not buying it up. Is anyone else out there having this problem?