Strong U.S. dollar and robust employment has once again made the mortgage rates hikes to be postponed which makes an average 30- year mortgage rate to reach lower than 4 percent.
According to themortgagereports.com, Freddie Mac has conducted a survey of 125 lenders nationwide and the result showed that an average 30- year mortgage rate dropped to 3.76 percent making it th lowest rate recorded for in six months.
The mortgage rates are now down with 0.77 percent compared to January last year's rate which made home buyer to purchase more houses and increases the buyer power with more than 8 percent nationwide.
15- year- mortgage rates are also down resulting to less than 3 percent "for the first time in 24 weeks" which made 15- year-home- refinancing to surge. Low rates has motivated lenders to approve more loans as more people are taking advantage of the low rates.
While people are enjoying on these low rates, mortgage rates are changing due to global economic news and Federal Reserve's decisions.
According to seekingalpha.com, as the mortgage rate decreases, the demand for housing increases which pushes home construction to expand their business and build more homes to cater the growing demand.
Though it's expected that mortgage rate will increase before the year ends, home buyers can still relax and enjoy the low mortgage rate for a long time as Federal Reserve is being careful in affecting the employment recovery in the country.
Investors and economists are also taking efforts in delaying the possible mortgage hike as their business are greatly affected by mortgage rates.
Low mortgage rate is also beneficial for the country's economy as businesses and consumers spend less on paying their interest and spend more in buying goods and services which in return helps the economy to expand. On the contrary, when Federal Reserve decided to raise the rates, the opposite will happen as people will spend more in paying interests than spending on goods and services.
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