The average rates for 30-year and 15-year fixed-rate mortgages in the US fell to new record lows last week, according to a new survey released by Freddie Mac.
Low interest rates in the country are expected to trigger growth in the housing market, which has been reeling from the expiration of the homebuyer tax credit in April.
According to Freddie Mac‘s survey, the 30-year fixed-rate mortgages averaged 4.56 percent last week, down from 4.57 percent in the previous week, while 15-year fixed-rate mortgages dropped to 4.03 percent from 4.06 percent, the lowest level since Freddie Mac has recorded this type of housing loan in 1991.
“The decline in mortgages rates over the past few weeks echoes the recent signs of weakening confidence in the strength of the economy, particularly the housing and consumer sectors,” said Frank Nothaft, chief economist and vice president at Freddie Mac.
Mortgage rates in the US are associated to treasury yields, as well as to securities based on mortgages. The National Association of Realtors said recently that US home sales fell to a three-month low in June, driven by the effect of the expiration of tax credit that caused the sales to decline dramatically.