Average US Mortgage Rates Breaking Records Again
Average rates for fixed mortgages have fallen again over the last week, once more breaking recently set records and hitting all-time lows – a trend which is now predicted to continue for quite some time.
The average interest rate for a 30 year fixed term deal fell from 4.09% to 4.01% this week, according to the figures released by Freddie Mac on Thursday. As such, this is the lowest rate officially recorded since records began back in 1971. The last time long-term mortgages were available with such value was back in 1951, when average longer-term mortgage lasted no more than 20 to 25 years.
15 year fixed term deals also saw a fractional decrease to 3.29%, which according to industry commentators is the lowest rate ever seen.
A range of international and domestic factors have once again contributed to wavering investor confidence, which has put a stop to what had begun to appear the end of low rates as we have come to know them.
However, even the lowest rates in recorded history have not been enough to prompt a boom in refinance deals or new mortgage applications, as millions are still finding themselves unable to qualify by way of insufficient cash or equity.
High levels of unemployment, uninspiring wages and a general lack of financial standing are all contributing to what looks set to be the very worst year for new home sales in the last 14.
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