Mortgage Rates Fall
Each week, government-backed Freddie Mac completes a mortgage rate survey of 125 banks nationwide. The survey asks the banks what their "going" mortgage rate for a prime mortgage borrower, including any discount points required to lock that rate. A prime borrower, defined by Freddie Mac, is a person with enough home equity or down payment, high credit scores and verified income which meets mortgage underwriting standards.
Freddie Mac's weekly survey this week shows the average 30-year fixed rate mortgage 4.41% down from 4.51% last week. This is the lowest the mortgage rates have been since November .The average 15-year fixed mortgages, popular with homeowners trying to pay off their housing debts dropped to 3.45%.
Freddie Mac attributes this decline that there were only slight gains in jobs and retail spending in December. This leading to speculation that an uneven economic recovery may slow the pace of the Federal Reserve's cuts to its Bond-purchase program. Yields on the benchmark 10-year Treasury notes fell the most since September.
The rise in mortgage rates slowed home sales, which have fallen for three straight months. But, overall 2013 was the best year for housing since the financial fallout. Most economists expect home sales and prices to keep rising this year, but at a slower pace. The long term trend is for rates to keep rising dependent on evidence of an improving U.S. economy.
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Ben Lang is a Birmingham Realtor specializing in Oakland County Real Estate. Ben is an agent with Max Broock in Birmingham, Michigan. See what past clients have to say about Ben Lang. Lang Premier Properties looks out for your best interests when you purchase a new custom luxury home. We always recommend working with an experienced luxury real estate agent when buying a new luxury estate.
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