Mortgage rates have been seen to reach record low levels over the past two years. This, along with the improving job market and greater economy helped boost the real estate market as a massive surge of buyer demand to purchase property occurred. Recent times indeed saw mortgage rates rise slightly, although to levels that were still far below percentages that they have been at before even the recession. As this perhaps cautioned many buyers that rates are rising, recent news informs us that they are back on a downward slope.
According to the Primary Mortgage Market Survey by Freddie Mac, the mortgage rates just hit a record low mark for 2014, with a 3.89% realized for a 30-year fixed-rate mortgage. This represents the lowest mark for mortgage rates since all the way back on the 30th of May in 2013.
Frank Nothaft, the Vice President and Chief Economist at Freddie Mac,
“Mortgage rates were down across the board on a week of underwhelming economic releases.”
“Demand is holding steady but would be more robust if it weren’t for lagging wage growth and tight credit conditions that continue to hamper those individuals looking for relief from rising rents,” said Lawrence Yun, NAR’s Chief Economist.
So while the market shows some stability, there are still some difficulties clearly occurring. However, even the 15-year fixed-rate mortgage dropped, highlighting another brilliant sign for buyers who want to enter the market today. The 15-year fixed rate mortgage dipped to 3.10% this week, down from 3.17% last week and 3.47% last year this time. The 5-year Treasury-indexed hybrid adjustable rate mortgage averaged 2.94% this week, down from 2.99% a year ago this week.
Going forward, one thing is clear. The rise in inventory should continue to help satisfy the large pool of demand, which may only grow stronger if mortgage rates fall even further.