As the housing recovery gets a new rebound, U.S. home loan rates drop again for a second week in a row.
This week’s average rate for a 30-year FRM decreased from 4.17% to 4.14%, as shown in a statement by Freddie Mac representatives. For 15-year FRMs, the Virginia-based mortgage-finance company reported, a rate drop from 3.3% to 3.22%.
Employment and consumer confidence are getting stronger, and the effects of the harsh winter weather are wearing off, as the housing market continues to appreciate. The Commerce Department reported that May brought an 18.6% jump in new-homes sales from April’s level, which is a six-year peak. Existing-home sales also saw a considerable 4.9% increase, the biggest since August 2011 according to NAR (the National Association of Realtors).
In an encouraging evaluation of market trends, Paul Anastos, president of Mortgage Master Inc. explained that thanks to interest rates near historic lows and strong buyer consumer power, there are optimal conditions for new contract signing.
Home loan rates have dropped below their last year’s level during the same period. Rates were higher in 2013 due to the Federal Reserve’s announcement that its stimulus plan would wind down. According to Freddie Mac, the rate for this week last year was 4.46% on a 30-year loan.