US Mortgage Rates Drop to Record Lows

Posted by: BIA Bay Area on May 20, 2013

CNN Money recently reported that US mortgage rates have dropped again, with the 15-year fixed-rate loan hitting a record low.

Last year the 15-year fixed-rate loan stood at 3.07% this month it dropped to 2.56% a record low while the popular 30-year fixed rate loan came in at 3.35% only .04% above its record low set November 2012.

The loan rates, coupled with the developer surge, has had a positive impact on the industry. Demand outweighs pace, and for the first time in years, developers are scrambling to build homes for well qualified consumers – a good “problem” to have in the building industry.

Low rates also help existing homeowners even if they don’t refinance their homes, CNN reports, “Affordable loans boost home buyer demand, sending home prices higher. They’ve recorded a 9% gain over the past 12 months…. the added home values mean some homeowners will no longer be underwater on their mortgages and can cash in the extra equity should they run into a rough patch, they can also sell their homes without resorting to a short sale.”

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Filed Under: Mortgage, News

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