Categorized | Finance and Mortgage

Mortgage Loan Rates Remain Near Record Lows

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For the fifth straight week, fixed-rate mortgage loans nationwide remain at, or around, their record lows. The rates continue to remain low, as lenders and the government both hope that they will help spur sales in the residential real estate market thanks to increased affordability.

According to Freddie Mac’s latest weekly report, thirty-year fixed rate mortgage loans sit just below four percent. Fifteen-year fixed rate mortgage loans remain at just over three percent. Adjustable-rate mortgage loans are also down, hitting a new record low in the past week.

Despite the low rates, the sales performance within the residential real estate market has remained slow throughout the past month. Potential homebuyers continue to pass on opportunities to enter the residential real estate market, largely due to concerns over the overall health of the job market. It is believed that if the job market begins to show strong improvement, consumer confidence will then grow. With improved consumer confidence, the residential real estate market will likely start to post gains.

The most recent economic data does pose good news for the market, as consumer confidence has risen in the past month. As such, pending home sales have also increased. As consumer confidence continues to grow, and mortgage rates continues to remain at low levels, it is likely that the residential real estate market will show further improvement.

The record low rates for fixed-rate mortgage loans have primarily benefitted those looking to refinance their current mortgages. However, if the rates continue to remain at record low levels, analysts believe that new home sales will start to show greater improvements.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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