Mortgage rates continue at record lows as the rates hit a new low of 2.66% for the average 15-year, fixed rate mortgage. This is one of the more popular loans for homeowners who want to refinance and lower their rate and pay off their loan more quickly.
The interest rate on the 30-year, fixed rate mortgage is at 3.37%. This loan type is popular for first-time homebuyers who can’t afford the higher payment of the 15-year loan.
After the Federal Reserve announced plans in September to buy $40 billion each month of mortgage-backed securities until the economy recovers, the rates have slowly gone down about .2% since September. And, if the economy continues to improve during the fall, it will help mortgage rates to be a little more firm.
Mortgage rates have not changed this week due to home construction, which is building steam in many parts of the country. Construction on single-family homes has been on the rise for months now; therefore, home buyers are becoming more confident with the housing market.
Even better news – the economists who were surveyed by CNNMoney believe the housing market has taken a turn for the better across the nation. Later this year, we should even see more home prices on the rise.