Mortgage Rates - The 30 Year Mortgages Are Nearing A Record Low
According to the new reports, the mortgage rates for the 30 year fixed rate ones have slid to record low levels for second week this time. This is resulting in lowering the cost of borrowing for the homebuyers. The demand for mortgage loans has been going through a slump for days or rather weeks and months. It is not only the interest rate of the 30 year fixed rate mortgages that have lowered. But, it is also the 15 year mortgage rates that fell too.
The lowered 30 year mortgage rate
On an average, the rate for the 30-year fixed-rate loans fell to 3.91 percent in last week from 3.94 percent. On the other hand however, the average 15-year rate matched the rate of last week which was at an all-time low of 3.21 percent. U.S. housing market which have been under constant pressures from that of the tight lending standards and the foreclosures which results in depression of values is now showing signs of good improvement. Purchase of mainly the previously owned homes were seen to have risen to almost a 10-month high in November as the inventory of the unsold properties were seen to lower to a minimum level in 6 years. This has been found and presented by the National Association of Realtors reported Wednesday.
According to the US economists, the falling home prices along with the already low interest rates have started to increase affordability of homebuyers and homeowners. In addition, the consumer confidence too has been on the rise because of the increase in the growth of jobs. However, the economists have also added that the real estate market in U.S. may have to face further lows and is not supposed to rebound till late 2012 or the rebound may even be as late as early 2013. This is because, this is the time while the gains might not be able to match those which have been seen before the housing boom which ended in the year 2006. This data has especially been put forward by a survey of 109 economists released last week.
In fact, it was seen that the number of unemployment claims filed by the countrymen have decreased. This is perhaps the lowest level of claims made since the year 2008 (April). This data has again been put forward by the Labor Department. In addition, as per the data of November of this tear, the unemployment rate has been seen to be the lowest too since the year 2009. All of these together are considered to be a really good sign and this is supposed to help the real estate and mortgage industry a lot.
Furthermore, the sales of the existing homes have increased by 4 percent in the month of November. This has happened in comparison to the sales percentage of the month of October. This increase is considered to be the highest since that of January.
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