Categorized | Finance and Mortgage

U.S. Mortgage Loan Rates Continue to Fall

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Mortgage rates in the United States have once again fallen to a new record low. According to the most recent survey conducted by Freddie Mac, mortgage rates for thirty-year fixed loans dropped to 3.87 percent, falling more than a tenth of a percentage point from last week.

The most recent decline has been attributed to the failure of the economy to realize the expected growth. When compared to the thirty-year fixed loan mortgage rate from last year, the current number is almost one full percentage point lower.

The rate for fifteen-year fixed mortgage loans also fell this past week to a new record low. The rate is now at 3.14 percent, which is a tenth of a percentage point lower than where it was last week. As with the thirty-year fixed mortgage loan rate, the year-over-year decline has been nearly a full percentage point.

Adjustable-Rate mortgage loans also dropped a small percentage to 2.80 percent. The rate was previously 2.85 percent.

Analysts believe that mortgage rates in the United States will continue to fall further, and that fifteen-year mortgage loans could have a rate below three percent in the very near future. It was recently announced that mortgage loan rates would likely remain at their current levels until the end of 2014. They will probably decline further, but there is very little chance that they see an increase in the near future.

Despite the record-low mortgage rates, the housing market continues to struggle. The economy still remains relatively flat, and until there is a significant boost, the housing market will perform as it has over the last year.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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