Thursday, March 17, 2011

Average rate on 15-year mortgage dips below 4 pct.

This is amazing, I thought the US was long gone from seeming under 4% rates again, due the budget gap, borrowing by state and local government, and of coarse printing of money by the Federal Reserve.  However, due to international events mortgage rates and interest rates have dropped again.  Plus, you have decreases in home values.  Let's see if we get a small spike in home sales for the month of March.
Freddie Mac said Tuesday the average rate on the 15-year fixed mortgage, a popular refinance option, dropped to 3.97 percent from 4.15 percent. The last time the rate was below 4 percent was in mid-December. It reached 3.57 percent in November, the lowest level on records dating back to 1991.
The average rate on the 30-year fixed mortgage fell to 4.76 percent from 4.88 percent the previous week. It hit a 40-year low of 4.17 percent in November.
Mortgage rates tend to track the yield on the 10-year Treasury note. Those yields have tumbled as investors sought safer investments.
Low mortgage rates haven't been enough to jumpstart the housing market. Home construction last month plunged to its lowest level in almost two years, while building permits, an indicator of future housing activity, sank to a five-decade low, the government said this week.
Homebuilders remain pessimistic about the outlook for housing. High unemployment, a record number of foreclosures and tough credit standards have kept many people from buying homes. And most economists don't expect home values to bottom out until midyear, another factor dissuading potential homebuyers.
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