Home funding company Freddie Mac said on Thursday that in the past week U.S. fixed home loan rates were at above record lows, tracking bond yields higher following surprise improvement in November employment.
0.10 percentage point rise in 30-Year mortgage
30-year mortgages averaged 4.81%, a rise of 0.10 percentage point from the the previous week, when it hit the lowest level since Freddie Mac started tracking it in 1971.
Historically Low mortgage rates – A response to government interventions
Historically low mortgage rates, are mainly a response to government interventions such as the purchase of more than $1.4 trillion in mortgage-related debt. These steps taken by the government are helping to restore the stability in hard-hit U.S. housing after a three-year dive.
Unemployment and fear of job loss – a challenge for Housing Market
Despite enticing borrowing costs and discounted house prices, factors such as high unemployment and fear of job loss has controlled the homebuyer’s appetite.
Drop in Unemployment Rate
It has been reported by the Labor Department last Friday that there has been a drop in unemployment rate. It has dropped to 10% in November from a 26-1/2-year high of 10.2% in October.
Rise in 15-Year Mortgage Rate
The average 15-year mortgage rate has shown a rise to 4.32% in the past week from 4.27 percent, which has been recorded as the lowest since Freddie started tracking this rate weekly in 1991.
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Posted by R. Mak in Mortgage Rates · 0 Comment
