The average rate on a 15-year fixed mortgage has fallen to its lowest level in decades.
The rate from the popular refinancing option dropped to 3.54 % this week from 3.66 % last week, Freddie Mac said Thursday. That’s the lowest result sing the mortgage buyer began tracking it since 1991. The average rate on the 30 year fixed loan fell to a year low from 4.39% from 4.55% the previous week. Mortgage rates treed to track the yield on the 10 year mortgage note. A weakening US economy had led many investors to shift money from stocks to bond, which are seen as safer bets. That has pushed treasury yeals to the lowest level this year. BOND yields fall as demand increases.
Low mortgage rates and depressed loan prices had don’t to revive the moribund housing market.
Sales of pervious occupied homes fell in June for a third straight month for a seasonally adjusted 4.77 million. The pace is lagging behind the 4.91 million homes sold last year – THE FEWEST SINCE 1997. In a healthy economy, people buy roughly 6 million homes per year.
New home sales also declined in June and are trailing last year sales, which were the worst on records dating back nearly ½ century.
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