Mortgage Rates on 30-Year U.S. Loans Fall to 4.99%
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Very interesting the long bond dipped below the 5% mark, this may be a sign that we are in for some deflation? Maybe not and its just a temporary dip while the market figures out what direction we are heading. I do think we will see some home buying stimulated with these low rates but it will be harder with the FHA increasing their lending standards even though this is a good thing for the long-term.
Mortgage rates in the U.S. dropped for a third week, lowering borrowing costs for consumers and supporting government efforts to boost the housing market.
The rate for 30-year fixed U.S. home loans fell to 4.99 percent for the week ended today from 5.06 percent, mortgage finance company Freddie Mac said in a statement today. The average 15-year rate declined to 4.4 percent from 4.45 percent, according to the McLean, Virginia-based company.
The 30-year rate reached a record low of 4.71 percent last month before rising to a four-month high of 5.14 percent at the end of the year. The drop back below 5 percent is “dramatic” and likely will attract attention from homebuyers, said Brad Hunter, chief economist at real estate research firm Metrostudy.
“The crossing of the 5 percent line may inspire people to take the plunge, I guess, and go ahead and buy a home now,” said Hunter, based in Palm Beach Gardens, Florida.