Mortgage Rates Hit Historic Low

russell_stoutThe national average on a 30 year fixed mortgage is 3.66%, setting a US historic record for mortgage rates. New rates continue to spur the housing market and provide prospective buyers with even more incentive to brave a modestly recovering housing market.  Russell Stout of Austin’s Guild Mortgage said Thursday that the average on the 30-year loan dropped to 3.62%. That’s down from 3.66% last week and the lowest since long-term mortgages began in the 1950s.The average rate on the 15-year mortgage, a popular refinancing option, slipped to 2.89%, below last week’s previous record of 2.94%.The rate on the 30-year loan has fallen to or matched record low levels in 10 of the past 11 weeks. And it’s been below 4% since December. Cheap mortgages have provided a lift to the long-suffering housing market. Sales of new and previously occupied homes are up from the same time last year. Home prices are rising in most markets. And homebuilders are starting more projects and spending at a faster pace.

The number of people who signed contracts to buy previously occupied homes rose in May, matching the fastest pace in two years, the National Association of Realtors reported last week. That suggests Americans are growing more confident in the market.

Low rates could also provide some help to the economy if more people refinance. When people refinance at lower rates, they pay less interest on their loans and have more money to spend. Many homeowners use the savings on renovations, furniture, appliances and other improvements, which help drive growth.

Still, the pace of home sales remains well below healthy levels. Many people are still having difficulty qualifying for home loans or can’t afford larger down payments required by banks.And the sluggish job market could deter some would-be buyers from making a purchase this year. The U.S. economy created only 69,000 jobs in May, the fewest in a year. The unemployment rate rose to 8.2% last month, up from 8.1% in April.National Mortgage Rates

National overnight averages Today +/-

30 yr fixed mtg3.66%

15 yr fixed mtg3.03%

5/1 ARM2.72%

$30K home equity loan5.70%

$30K HELOC4.59%

Russell Stout
Guild Mortgage of Austin

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