Mortgage rates for 30-year U.S. loans again fell, enabling the U.S housing market to improve via low borrowing costs. The declining rates match the lowest level on record.
Freddie Mac announced the average rate for a 30-year fixed mortgage fell to 3.49 percent
from 3.55 percent, equaling the record reached in July of 2012. The average 15-year rate also fell to 2.77 percent from 2.85 percent, representing a new low rate on record.
In August, sales of existing homes climbed to a two-year high, according to the National Association of Realtors, mostly attributed to low interest rates. The Commerce Department also reported that single-family housing starts rose at the fastest annual rate since April 2010.
Many analysts expect the positive trend to continue unless recessionary elements take hold. The Federal Reserve’s purchase of mortgage securities has enabled the rate decline as well. Looking forward, rates are expected to remain very low for the next 12 to 24 months as long as the Federal Reserve continues its mortgage-debt based securities purchases.Pages: