Tags: mortgage | home loans | interest rates | housing

Mortgage Rates Fall With 30-Year at 19-Month Low of 3.73 Percent

Thursday, 08 Jan 2015 03:33 PM

U.S. mortgage rates dropped to the lowest level in more than a year and a half as falling oil prices and concerns about the strength of the euro drove investors to the safety of the U.S. government bonds that guide borrowing costs.

The average rate for a 30-year fixed mortgage tumbled to 3.73 percent from 3.87 percent last week, Freddie Mac said in a statement. The average 15-year rate declined to 3.05 percent from 3.15 percent, the McLean, Virginia-based mortgage-finance company said.

“The dip is sizable,” Keith Gumbinger, vice president of HSH.com, a Riverdale, New Jersey-based mortgage-data company, said in a telephone interview. “Troubles beyond our borders have been, over the last few years, the friend of the American homebuyer.”

The 30-year rate is the lowest since May 23, 2013, when it was 3.59 percent, Freddie Mac data show. U.S. housing demand has gotten a boost from borrowing costs that are close to record lows. Loan applications rose 11.1 percent in the week ended Jan. 2, the Washington-based Mortgage Bankers Association said. That gain followed an 18.2 percent plunge the previous week that took the group’s index to its lowest level in more than 14 years.

Investor demand for 10-year U.S. Treasurys, a benchmark for mortgage rates, caused their yields to fall for seven days before rising Wednesday.

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U.S. mortgage rates dropped to the lowest level in more than a year and a half as falling oil prices and concerns about the strength of the euro drove investors to the safety of the U.S. government bonds that guide borrowing costs.
mortgage, home loans, interest rates, housing
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2015-33-08
Thursday, 08 Jan 2015 03:33 PM
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