The borrowing costs for 30-year loans have reached the lowest 2014 point after U.S. mortgage rates dropped for a second week.
Freddie Mac announced that the average rate for a 30-year fixed mortgage is down from 4.12% to 4.1%. The McLean, Virginia based mortgage finance company further reported a slip in the 15-year rate from 3.24% to 3.23%.
The home demand was supported by the drop in the 30-year rate from its two-year high of 4.58% last August. October 2013 was the last time the 30-year rate was this low. The National Association of Realtors announced that the annualized rate for sales of previously owned houses was 5.15 million in July, with a 2.4% increase from June. This is the highest increase since September 2013.
Although financial experts expect an increase in the activity of the mortgage sector given these low rates levels, sales have been down 4.3% from July 2013, as shown by NAR.