Mortgage rates in the U.S. for the week ended Thursday, July 24 remained relatively flat, according to the latest mortgage index survey by Freddie Mac, the government backed lending giant. Rates held steady at record lows boosting affordability for potential home buyers.
The survey found that average 30-year-fixed mortgage rates remained unchanged from last week's 4.13 percent. Last year during this time, the rate was 4.31 percent.
The average 15-year-fixed mortgage rates went up 0.6 percentage points to 3.26 percent from last week's 3.23 percent. It averaged 3.39 percent at the same time, last year.
The five-year adjustable mortgage rate averaged 2.99 percent, higher than the 2.97 percent last week. The rate was 3.16 percent a year ago.
The average one-year treasury-indexed adjustable mortgage rate was frozen at 2.39 percent, unaltered since last week.
Acording to the Mortgage Banking Association, loan applications for new home purchases and refinancing also went up 2.4 percent for the week ended July 18, as rates remained at record lows.
So, what kind of loans are doing well in the market right now?
Apparently hybrid adjustable mortgages (ARMs) and fixed-period ARMs are selling like hot cakes in the current buyer market. Home buyers are cashing in on the record low mortgage rates and are opting for a floating rate. The low fluctuating rate is making payment easier for them, MarketWatch reports.
"Lower rates will provide an enticement for potential homebuyers who are sitting on the sidelines to move into the market," Millan Mulraine, deputy head of U.S. research and strategy at TD Securities USA LLC, told Bloomberg in a telephone interview.
While Freddie Mac experts didn't comment on the barely-there mortgage activity this week, they noted that a positive existing-home sales report was good news for the housing industry.
"Mortgage rates were little changed for the week with the 30-year fixed-rate mortgage remaining unchanged. Meanwhile, we received some good news on housing with existing home sales climbing 2.6 percent to a seasonally adjusted annual rate of 5.04 million in June, the highest pace since October 2013," Frank Nothaft, chief economist at Freddie Mac, said in a statement.
Existing home sales in the U.S. went up in June to reach its highest since October 2013 as hiring improved in the country and the economy added more jobs, according to a latest report by the National Association of Realtors (NAR).
