Freddie Mac recently reported that the average rate on a fixed-term 30-year mortgage has dropped from its record two-year high of 4.51 per cent to settle on 4.37 per cent. The dip came following the Fed’s announcement last week that it will delay the tapering of aggressive bond buying, news that eased market fears for the first time in the last two months. And as fears subsided, so did the current mortgage rates.
The decline can only be good news for potential home buyers on the lookout for ways to boost their savings on a home purchase. Shopping for the best mortgage rates in Utah and elsewhere in the US is a crucial consideration that ultimately determines the amount of monthly mortgage a buyer will pay. And as mortgage rates are starting to look attractive once again, interested home buyers are seeking out reputable mortgage lenders to help them figure out possible savings on their home purchase.
The surge in mortgage rates in the last few months has put a damper on the overall recovery of the housing market. The Commerce Department reported a 9.9 percent decrease in housing applications in June, the lowest in ten months. It is hoped that the this most recent drop in interest rates will encourage prospective home buyers to view their purchase as a worthy investment.
In related news, another positive development on the housing market was announced. According to the National Association of Home Builders/Wells Fargo, builder sentiment index among consumers rose six points to 57, suggesting that more and more people nationwide are gaining confidence in the home building industry. This poses good prospects for home builders and suppliers, as well as for consumers who may start expecting prices on materials and component parts to stabilize for as long as this market assurance holds.
The housing market, indeed, seems to be looking up while the rates are down. Turn the opportunity in your favor and make sure you get good advice from experienced mortgage lenders in Utah. Mortgage lenders like Altius Mortgage Group, can help offer a range of affordable terms and interest rates suitable for you. If you play your cards well and watch the market, your home can still make a great investment for you over the long and short term.
Federal Reserve Chairman Ben Bernanke is keeping his word, so far, delaying the tapering of aggressive bond purchase, which the housing market welcomes as interest rates respond to favor home buyers. Market fears have subsided in the meantime, and by the looks of it, the Fed understands that if it wants home buying to pick up for any length of time, it will have to sustain the balance and thwart any moves that will put further strain on housing recovery.