The average rate of 30-year fixed mortgage has fallen from 3.39% to 3.37%, according to Freddie and Mac. The mortgage rate two weeks ago was 3.36%, which was the lowest rate since the year 1971.
The 15-year fixed mortgage rate hits all-time low from 2.7 percent last week to 2.66 percent.
The housing industry is recovering steadily due to the cheap mortgages that can be found on the market.
This year, the average mortgage rate of the 30-year fixed home loan has never reached 4%. Moreover, the rates also decreased after the Federal Reserve went on buying mortgage bonds in September in an attempt to attract more lending and spending of consumers.
The Federal Reserve said it will keep on buying mortgage bonds until the employment market improves.
Consumer confidence increases with the rise of home prices. They tend to spend more freely, which is good for the economy. Almost 80 percent of the economic activity in the United States is driven by consumer spending.
The prices and sales of homes have also increased in several areas. More homes are also being built.
The Commerce Department reported that residential properties in the United States are being constructed at its fastest rate in 4 years.
More reports indicate a significant boost in the housing market ever since the housing bubble burst five years ago.
Last week brought more optimistic news on the housing industry as sales of new homes in the country leaped last month to the highest level in two years. There is also a slight increase in the number of Americans who signed contracts to purchase houses, according to the report of National Association of Realtors.
Freddie Mac gathers data and computes the average mortgage rates by conducting a weekly survey to various lenders nationwide.
- There are some mortgage lenders who charge a lot of extra fees — often to the point of being illegal. If your mortgage lender tried to sneak them in the contract in anyway and you want to remove them, you should talk to a Real Estate Attorney San Antonio to help you resolve the issue.