Mortgage Dropped To A New Record
The average rate on the 30-year fixed mortgage dropped to 3.88 percent this week, reaching to all-time low. That's just above the rate of 3.87 percent reached in February, the lowest since long-term mortgages began in the 1950s. Besides the 30-year fixed mortgage, 15-years dropped to 3.11 percent from 3.21 percent last week.
According to an article from Associated Press, "mortgage rates are lower because they tend to track the yield on the 10-year Treasury note. Last week's disappointing report on March job growth led more investors to sell stocks and buy Treasurys, which are considered safer investments. As demand for Treasurys increases, the yield falls." At the mean time, home prices continue to fall. Reduced prices, record-low mortgage rates, higher rents and an improving job market seemed to be attract more and more potential buyers. Open houses are drawing crowds, and a wave of foreclosures is leading investors to get bargain-priced homes also. Links: Seattle Times: Rate on 30-year mortgage falls to 3.88 percent