Mortgage rates continue to drop significantly in US
Bedford, TX -- (SBWIRE) -- 09/11/2012 -- At a time when a global recession continues to show its drastic affect on the world economy, leaving the housing market and standard of living on the hitch, the mortgage rate in United States has declined significantly in the last week, with the aim to contribute towards housing recovery.
Last week, the mortgage rate on 30-year loan dropped to 3.59 percent from 3.66 percent. The average on the fixed mortgage loan for 15 years, which is commonly used for refinancing purposes, also slipped to 2.86 percent from 2.89 percent. While the mortgage rate on five year adjustable loan declined to 2.78 percent and one year rate for adjustable mortgage loan dropped to 2.63 percent.
After this decline, the average fixed rates of mortgage in U.S are slightly above the lowest rates reached earlier in this year. If the rates for the mortgage loan continue to drop with the same trend in the next three months, it will definitely reach to the lowest level this year.
Frank north, the chief economist and vice president from Freddie Mac believes that the mortgage rate may decline further if it is necessary for the ongoing recover process.
Treasury bond yields fell, allowing mortgage rates to follow, after the release of the July 31st and August 1st minutes of the Federal Reserve’s monetary policy committee. Committee members agreed that economic activity had decelerated more in recent months than they had anticipated at their last meeting in June. Some members even saw room for additional stimulus fairly soon if needed. “Frank said, according to Detroinews.com
Five years after the bubble burst, the key reason for the housing market to rebound from the drastic situation is the lower mortgage rates. However, there is still a long time required in order for the housing market to recover back to its full health.
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