(PRWEB) September 08, 2012
According to the latest data from Freddie Mac, U.S. 30-year and 15-year fixed mortgage rates continue to slide since last week. As the graph shows, the average rate on 30-year mortgage continued to drop from Mar 29th to June 7th and the rate dropped to the first low record of 3.67% in the week of June 7th. For the following week, the rate slightly increased to 3.71%. However, it continued dropping for the following 7 weeks and hit a record low of 3.49%. Since Aug 2nd, the rate has increased for four consecutive weeks, and climbed up to 3.66% followed by a decline. For the week of Sep 6, the average 30-year fixed mortgage rate was 3.55%, slightly higher than the lowest record. The 15-year fixed mortgage average rates show similar trends. Mortgage rates fell to 2.86%, down three basis points from 2.89% the week of Aug 23rd and 6 points higher than the lowest record of 2.80% five weeks ago.
A mortgage specialist from Mortgage Hands, a Texas based mortgage company operating in Dallas, Fort Worth, Plano, McKinney, etc, said last Friday that after four consecutive weeks of small increases, the mortgage rate has dropped to another low. The low interest rates have encouraged the housing market to slightly recover. Housing sales are expected to reach to another high level since record lows reached earlier this year. Housing sales of newly-built and formerly occupied houses are above last year’s plane. With the good prospects on the sales of the houses, builders’ confidence is also at its highest level. Even so, the housing market still has a very long way to go to completely recover. Many people are still not qualified for mortgages or cannot afford the large down payment.
Mortgage rates are low because the government hopes to stimulate the slow-moving economy. Lower mortgage rates will boost house purchase and many other investments to speed the economic rebound. Besides, with the weak and uncertain U.S. economy, investors expect to put their money in safe investments. Mortgage is always considered as safe assets. While the demand for mortgage increases, the rate falls.
Some U.S. mortgage buyers who have already got their mortgages strongly suggested the potential home buyers seize the great opportunity to get into a new house. Compared with the houses these homeowners bought 5 years ago, the current new houses with the low mortgage rates may save the home buyers tens of thousands dollars over the lifetime of the loan. Many people believe that right now is the perfect time for home buyers to purchase a new house or upgrade to the next house.
Based on the latest three months mortgage trends, the mortgage rates went up and down irregularly. Some potential home shoppers think that the rate will probably continue to fall while others are concerned that the low mortgage rates might move higher again after seeing the mortgage rates increase for several consecutive weeks last month.
“With today’s low mortgage rates, it seems like a great time to refinance loans. Yet, without a good understanding of the limitation and rules of the mortgage industry, it is extremely hard to make a wise decision. This is why there are so many mortgage brokers springing up nowadays, who are knowledgeable of the limitation, rules and the available mortgage options,” said a home loan specialist at Mortgage Hands. “We will continue to work with home buyers for refinancing or a new property”, he said.