Average 30-year fixed-rate mortgages in the US dropped to its lowest point in four consecutive weeks, leading to a decline in borrowing costs as recovery in the housing market takes shape.
According to latest data by Freddie Mac, the average rate for 30-year fixed mortgages fell to 3.78 percent for the week ended 24 May, the lowest since 1971. Meanwhile, 15-year fixed-rate loans averaged at 3.04 percent for the week.
Home buyers are now returning to the property market, as record low interest rates, job gains and falling prices all helped to lift demand.
The Commerce Department said that acquisitions of new homes rose 3.3 percent last month compared to the previous month, while sales of secondary homes saw their first rise in three months, up 3.4 percent from March.
“Low mortgage rates are playing an increasingly important support for the housing market,” said Keith Gumbinger, Vice President of mortgage website HSH.com.
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