23 Sep Home Mortgage Loan Interest Rates Dip; New Trend?
Just a couple of weeks after home mortgage loan interest rates reached a two-year high of 4.58% on August 22nd, the average U.S. mortgage loan interest rate on fixed mortgages declined this week amid signs of a slowing economic recovery.
This past Thursday, mortgage buyer, Freddie Mac, stated that the average rate on the 30-year loan fell to 4.50% from 4.57% last week, while the average on the 15-year fixed mortgage dipped to 3.54% from 3.59%.
Long-term mortgage interest rates have risen more than a full percentage point since May, when Federal Reserve Chairman Ben Bernanke first signaled that the central bank could begin reducing its monthly $85 billion in bond purchases this year if the economy looked strong enough. These purchased are intended to keep long-term mortgage loan rates very low to encourage borrowing and lending. However, since the Federal Reserve recently announced it would continue it’s current pace of the bond-buying program, long-term mortgage rates moved a little lower this week and may continue in the downward direction in the weeks ahead.
Even with the highest mortgage loan interest rates in a two-year time period, existing home sales reached their highest point in August in more than six months. Though interest rates seem to be slowly inching downward, this current home sales trend is not fully expected to continue. Many areas are experiencing limited choices due to tight inventory, affordability is still not as favorable as it once was, and in some areas restrictive mortgage lending standards are keeping some otherwise qualified buyers from completing their purchases.
With interest rates dipping down, now is the time to consider all of your options. Whether you are buying a new home or looking to refinance your current home, you can trust Fairway Independent Mortgage of the Carolinas to make your home loan as stress-free as possible. Call one of our offices today to get started. Simply fill out our online application to get started.