US Mortgage Rates Heading for New Record Lows
Average US mortgage rates have continued their seemingly unstoppable decline, with many long-term borrowing costs now hovering around some of the lowest levels on record, second only behind those of the first week of October.
The national average for the standard 30 year fixed rate mortgage fell as low as 3.98% for the week, from the 4% recorded a week earlier. Last month saw the rate drop to 3.94%, which was the lowest since records began back in 1971. 15 year averages also fell to 3.30% this week, slightly down from the 3.31% of the week before.
Falling borrowing costs may finally be having a positive effect on the demand for home purchases across the US. Last month, previously owned home sales rose to an annual rate of 4.97 million, which marks a slight increase from the 4.9 million in September. This gratefully contradicted the official surveyor estimate of a further decline to 4.8 million.
Low interest rates are certainly having their own effect according to analysts, while housing is remaining incredibly affordable as well. Median home prices were $162,500 in October, which is down 4.7% from the year before and a whopping 29% down from the peak seen in July 2006.
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