The average rate for 30-year fixed loans in the US declined to 3.32 percent this week compared to 3.4 percent previously, according to McLean, Virginia-based Freddie Mac (FMCC).
The average 15-year rate also slipped from 2.67 to 2.66 percent, Bloomberg reported.
The US housing market is recording price increases as low interest rates boost demand. The Washington-based Mortgage Bankers Association (MBA) announced that a measure of home loan applications rose 6.2 percent for the week ended 7 December.
The group’s purchase gauge recorded a 0.7 percent increase while the refinancing index climbed eight percent.
“Stronger mortgage demand suggests that would-be buyers are growing in confidence,” said Paul Diggle, property economist for Capital Economics in London.
“Nevertheless, mortgage lending will continue to be held back by tight credit.”
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
Related Stories:
Many fear home repossession in the UK
Aussie borrowers advised to shop around