Mortgage rates reverse, won't hurt buyers overall
Posted on Thursday, July 18, 2013 at 10:48:02 AM
For those interested in residential financing, one eye is always kept on mortgage rates. Recently the rates jumped up, albeit still on the historically low side - now, its dropping, which could be a good sign for many home buyers.
The average rate for a 30-year FRM fell to 4.37 percent, from 4.51 percent a week earlier, according to Freddie Mac's Primary Market Survey. For the 15-year FRM, previous rates have dropped from 3.53 percent to 3.41 percent, nearly one full percentage point higher than the same time last year.
According to HousingWire, the market still is waiting on the Federal Reserve to weigh in. Frank Nothaft, vice president and chief economist for Freddie Mac pointed to a statement made on July 10.
"Fixed mortgage rates fell as Federal Reserve Chairman Bernanke helped ease market concerns about the Fed reducing its bond purchases," said Nothaft. "Chairman Bernanke indicated that a highly accommodative monetary policy is what's needed in the U.S. economy."
The changing rates shouldn't affect the recovery, though, and those using residential financing have little to worry about, according to CNN Money. Rates will most likely impact the number of homes sold, not the average price.