The average U.S. rate on the 30-year fixed mortgage was unchanged this week near historic lows, while the average rate on the 15-year loan fell. Low mortgage rates could help strengthen the housing recovery.
Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan stayed at 3.53%. That’s still near the 3.31% rate reached in November, the lowest in records dating to 1971.
The rate on the 15-year fixed mortgage dropped to 2.77% from 2.81% last week. The record low is 2.63%.
Cheap mortgages are encouraging more people to buy homes and refinance, trends that could help boost the economy this year.
Increased sales are helping push home prices up steadily, which makes consumers feel wealthier and more likely to spend. In addition, a limited supply of houses for sale has created demand for new construction, which has made builders more confident.
And when people refinance, that typically leads to lower monthly mortgage payments and even more spending. Consumer spending drives nearly 70% of economic activity.
Still, the housing market has a long way to a full recovery. And many people are unable to take advantage of the low rates, either because they can’t qualify for stricter lending rules or they lack the money to meet larger down payment requirements.
Want to take advantage of today’s historically low mortgage rates? Many qualify sooner than they think. You might be surprised! Qualification guidelines vary greatly depending on a potential borrower’s specific situation. For this reason, it is important discuss your situation and explore your options with someone knowledgeable and experienced. Call us for more information at (888) 634-4260!Tweet