Mortgage rates in the US hit another record low, with the average rate of 30-year fixed loans standing at 3.91 percent this week, down from 3.94 percent last week, according to the Primary Mortgage Market Survey released by Freddie Mac.
Frank Nothaft, Chief Economist at Freddie Mac, said rates dropped 0.9 percent since the start of 2011. This means that homeowners with a US$200,000 (S$258,168) mortgage can get up to US$1,200 (S$1,549) in savings a year.
He noted that home sales are getting a boost, with interest rates at or below four percent for the last eight weeks.
Meanwhile, the average rate for 15-year fixed mortgages remains unchanged, matching last week’s 3.21 percent.
“We’ve entered the holiday lull with nothing much happening to change rates one way or the other,” said Greg McBride, Senior Financial Analyst at Bankrate.com.
He added that mortgages should remain affordable in 2012. As the sluggish US economy and European debt crisis keep investors’ focused in finding a safe haven for their cash, demand for US Treasury notes should remain high, driving down their own yields.
“For well-qualified buyers, interest rates should be no impediment to home buying in 2012,” said McBride.
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