Fixed-Rate Mortgages Set Record Lows for 6th Week

Low interest ratesIt is becoming a familiar refrain from Freddie Mac: Fixed-rate mortgages set new lows in the seven days ending today – the 6th consecutive week with record-breaking interest rates.   
The rate on the 30-year mortgage averaged 4.54 percent this week, down from last week’s 4.56 percent.
The rate on the 15-year mortgage averaged 4.00 percent, compared to last week’s 4.03 percent.
Both marks set new lows for Freddie Mac’s survey. It began tracking the 30-year rate in 1971; the 15-year rate in 1991.
“For the sixth week in a row, interest rates on fixed-rate mortgages eased to all-time record lows during a week of mixed housing data reports,” said Frank Nothaft, vice president and chief economist for Freddie Mac.
The number of local markets experiencing annual increases in home prices appears to be growing, he said.
For example, 13 metropolitan areas in the S&P/Case-Shiller 20-city index saw price appreciation over the 12-months ending in May, compared to 11 in April and 10 in March.
But Nothaft added that other reports paint a grim picture of the housing market.
“However, existing home sales in June slowed to an annualized pace of 4.37 million units, the fewest since March,” he said. “Moreover, although new home sales jumped by almost 24 percent to 330,000 dwellings, it represented the second slowest rate since 1963.”

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