Today Freddie Mac released the results of their Primary Mortgage Market Survey, and rates continue to reach record lows.
“Existing home salesplunged 27 percent in July, while new homes fell 12 percent to a newall-time record low, which led to some market concerns that the housing market may slow the economic recovery. As a result, long-term bond yields fell to the lowest levels since January 2009, allowing fixed mortgage rates to ease to new record lows this week,” said Amy Crew Cutts of Freddie Mac.
The 30-year fixed-rate mortgage (FRM) averaged 4.36 percent with an average 0.7 point for the week ending August 26, 2010, down from last week when it averaged 4.42 percent. Last year at this time, the 30-year FRM averaged 5.14 percent.
Amy Crew Cutts also said “Much of the slowdown in sales, however, was expected due to the recently expired homebuyer tax programs, which pulled through future home purchasesinto the first half of the year. For instance, average existing home sales over the first seven months of 2010 were nearly 8 percent higher than over the same period a year ago.”
“Moreover, house prices still appear to be stabilizing. Nationally, house prices rose 0.9 percent on a seasonally-adjusted basis during the second quarter of this year this year after 11 consecutive quarterly declines, according to the Federal Housing Finance Agency’s purchase only index. Eight of the nine census regions experienced positive gains, compared to none in the first quarter.”