Last week’s interest rate rested on 3.40% but dipped to 3.38% this week. Freddie Mac, a mortgage buyer, reports that this decrease in 30-year loans is a little bit above the 3.31% rate last November, which is the lowest recorded dip since 1971.
This decrease is obviously making a buzz in the industry. The atmosphere is ripe with optimism and positive predictions for the future the housing market. As always, this is good news for buyers and economists alike.
Buyers who plan to purchase a property with 30 year loans are in for a treat with this news. The only question that leaves many people asking is where to get the money to pay for the initial transaction expenses. This tiny bump does not dampen the market’s spirit as more and more economists are seeing a healthy recovery of the industry within this year.
Fact remains, however, that the economy is as unpredictable as the weather. One moment, the mortgages are low and it is sky rocketing in the next instance. Economists believe that now is the best time to invest on properties especially with the healthy trend that the industry is experiencing as of late.
For buyers who plan to purchase properties with 15 years worth of fixed mortgages, the news is not as big. The record low 2.63% has increased quite a bit to 2.66%. Although this increase is arguably irrelevant, the trend remains steadily rising.
According to Freddie Mac, the average rate of 3.66% for 30-year fixed mortgages in 2012 is recorded as the lowest annual average in the last 65 years. Analysts encourage buyers to take advantage of this record-breaking decrease since it may not happen again in the next 60 years or so.
Mortgage Rates Fall to Record Low – The Effects
To state it simply, low mortgages make home buying affordable. This is great news for regular citizens who plan to buy a house and lot this year. However, it is important to keep in mind that this is only true for 30-year fixed mortgages.
Since mortgages become cheaper, the market is expected to flourish again this year. The decrease in mortgage rates is known to be the key reason why the market has made a comeback in 2012. Because of this good news, many economists look forward to a strong recovery for the housing industry in 2013.
This report helps strengthen other industries as well. The loans industry, particularly as far as bad credit loans are concerned, has been enjoying the same boost this year. Although these are all positive signs, economists keep on reminding consumers that the economy can turn upside down in a matter of days.
The timing is right and those who wish to take advantage of the current economic climate are making a good investment. This is true especially since the prediction for 2013 are all positive. These predictions are based on statistics and figures that show a steady improvement in the housing market in 2013.