The average rates on 30-year fixed mortgages in the US hit a new low of 3.91 percent last week, down from 3.94 percent in the preceding week, according to Freddie Mac.
It added that average rate of 15-year fixed mortgages remained at its record low of 3.21 percent, compared with 4.15 percent a year ago.
“Rates on 30-year fixed mortgages have been at or below four percent for the last eight weeks and now are almost 0.9 percentage points below where they were at the beginning of the year,” said Frank Nothaft, Vice President and Chief Economist at Freddie Mac.
This means that home owners today are paying more than US$1,200 (S$1,549) less per year on a US$200,000 (S$258,219) loan.
“This greater affordability helped push existing home sales higher for the second consecutive month,” he added.
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