Mortgage Rates Hit 2014 Low

Dated: September 4 2014

Views: 570

Mortgage rates have dropped to their lowest level in over a year.

The average rate for a 30-year loan now stands at 4.1%, according to Freddie Mac. That matched its lowest level since June 2013, when it stood at 3.93%. The average 15-year fixed was 3.23%. The government's stimulus program has helped keep borrowing costs down. The Federal Reserve has been purchasing Treasury Bonds and mortgaged-backed securities for years, providing a steady market for mortgages.
But the Fed has cut back on its purchases, and plans to end the buying program entirely in October, reducing demand for mortgage bonds. That should eventually cause rates to climb. Low mortgage rates and home prices that are climbing more slowly should boost the housing market, said to Keith Gumbinger, spokesman for HSH.com, a mortgage information company.
"That should provide a solid foundation for home sales this fall," he said. It was a strong summer. Sales of existing homes rose 2.4% in July to an annualized rate of 5.15 million homes, according to a different report released Thursday by the National Association of Realtors Stronger job growth has boosted the market, according to NAR's chief economist, Lawrence Yun, and a larger inventory of homes on the market give buyers more to choose from. "That's making prospective buyers less hesitant about entering the market," he said.
Source
Blog author image

Mark Ross

For Mark Ross, founder of Ross NW Real Estate and professional real estate broker, real estate has always been the career of choice. During his 25+ years in the industry, Mark has gained experience in....

Latest Blog Posts

The Housing Market Is Hot But Not In A Bubble

Existing home sales came in at a whopping 6,850,000, beating estimates with the highest print since 2006. Days on market fell from 36 days to 21 days on a year-over-year basis. Cash buyers remain at

Read More

10 Ways To Enjoy Your Outdoor Living Space All Year

Some believe that the end of summer also marks the final days of enjoying outdoor barbecues, parties, and casual get-togethers. Yet, just by adding a few design elements to your outdoor space, you

Read More

3 Ways To Tap Your Home Equity And Which One Is Right For You

You need to come up with some cash, fast. Maybe you have a leaky roof that desperately needs fixing or you need help paying for your kid's first semester of college. But where do you turn?If you're

Read More

These Pandemic Related Housing And Design Trends Are Not Going Away

Home trends come and go, but social distancing and staying at home have ushered in a new way of lifeā€”and some of those changes have spurred home trends that are likely to stick around well past

Read More