Washington – The average rate on the 30-year fixed mortgage fell this week to a record low, the ninth time that has happened in the last year. Even with the cheapest rates in history, the housing market remains depressed.
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Mortgage buyer Freddie Mac says the rate on the 30-year loan dropped to 3.87 percent this week. That below the previous record of 3.88 hit two weeks ago.
The average on the 15-year fixed mortgage fell to 3.14 percent, also a record low. Records for mortgage rates date back to the 1950s.
Rates have low for more than a year. Yet few people can afford to buy a home or qualify for a loan. Those who can have already done so.
A while ago, I came across an article connected with this issue. It was entitled “Mortgage rates reach record lows — again”. For the second week consecutively, the housing industry has seen record low mortgage rates. Slower than expected economic growth is to blame for the lows, claims Freddie Mac. Mortgage rates are lower because they track the yield on the 10-year Treasury note, which fell below 2%. Average fixed mortgage rates hovered around 4 percent at the end of 2011. Well, I believe the homeowners would then be able to take advantage of the record low interest rates.