Home loan rates in the US remained virtually unchanged for the week ended 29 November, with borrowing costs hovering near historical lows as home prices recover from a six-year slump, reported Bloomberg.
According to Freddie Mac, the average rate for 30-year fixed loans was at 3.32 percent, a slight increase from the record low of 3.31 percent, while the average rate for 15-year loans rose from 2.63 to 2.64 percent.
The Mortgage Bankers Association’s (MBA) measure of purchase applications rose 2.6 percent for the week ended 23 November reaching the highest level this year, while the refinancing gauge fell 1.5 percent.
The low rates are also boosting home purchases and prices are being driven up by a tightening supply of listings. Moreover, Standard & Poor’s/Case-Shiller index which tracks home prices in 20 US cities rose by three percent in September compared to the same month last year. This is also the highest rise since July 2010.
“Housing is experiencing a sustainable upturn,” said Paul Diggle, Property Economist at Capital Economics (London) in a note to clients after the Case-Shiller report was released.
Moreover, deals to buy previously owned homes climbed 5.2 percent in October from September, said the National Association of Realtors.
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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