Mortgage rates inched lower in the latest week as the Federal Reserve continues to stabilize the market in an effort to keep borrowing costs low. The Mortgage Bankers Association reports that the 30-year fixed-rate mortgage fell to a survey low of 3.26% with .35 in points. The Market Composite Index, a measure of total mortgage loan application volume, rose 2.2%, the Purchase Index was up 5% while the Refinance Index saw a 0.4% gain. The 30-year rate is down from 3.79% seen in late March. Annually in June, the Purchase Index was up 33% while the Refinance Index increased 111%.
As the U.S. continues to reopen and the economy accelerates, the housing sector is perking up after the pandemic induced shutdown curtailed activity. Fannie Mae reports that 61% of Americans now believe that is a good time to buy a house and that consumer attitudes regarding homebuying and home-selling conditions have greatly improved. Fannie's Home Purchase Sentiment Index rose 9 points to 76.5 with four of the six components increasing for the month. However, Fannie Mae believes that believe the continuing uncertainty regarding the coronavirus’ containment suggests an uneven and potentially volatile course toward economic recovery.
Mortgage rates at record lows. Home purchase activity rises. Now is a good time to buy a house?
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