We love when there is good news to report on the real estate industry! Last week, average fixed mortgage rates fell to a record low for the second consecutive week! That’s according to mortgage giant Freddie Mac.
According to Freddie Mac, the rate on a 15-year fixed mortgage dipped to 2.69 percent and 30-year fixed mortgage dropped to a measly 3.36 percent, which is the lowest recorded rate since long-term mortgages began over fifty years ago! The New York Times is reporting that this is because the Federal Reserve started buying mortgage bonds to strengthen the housing recovery.
And while mortgage rates are falling, home sales are rising. Sales of previously occupied and newly built homes are up from last year, most likely due to the fall in mortgage rates, which has made builders more confident to build more homes in anticipation of selling. While we still have a ways to go until the market is back to a healthy place, these are definitely encouraging numbers!
Have you seen a spike in home sales in your area due to lower mortgage rates? Comment and let us know!