The time for homebuyers to lock in their rates may be now. According to Freddie Mac (the Federal Home Loan Mortgage Corporation), mortgage rates have approached the lowest level of 2014.
Freddie Mac conducted the Primary Mortgage Market Survey, which indicates that the average rate for a 30-year fixed mortgage reached 4.12%. Last week’s rate was reported at 4.19%. Experts attribute the drop in rates to concern over European growth and discouraging Federal Reserve forecasts.
Frank Nothaft, Freddie Mac’s vice-president and chief economist, said that despite a bleak outlook from the Federal Reserve, mortgage purchase applications were up 2% on the week. 248,000 new jobs were also created, lowering the headline unemployment rate to 5.9%.
According to the weekly survey by the Mortgage Bankers Association, mortgage applications for new homes went up 3.8% from last week.
The housing market has demonstrated other positive signs of growth. The Refinance Index went up by 5% from the week before, while the Purchase Index, which is adjusted seasonally, rose 2%, the highest level since July.