Mortgage rates continue to drop to all time lows as the week ending July 5th brought rates down again this week to 3.62% averages on a 30 year fixed rate mortage. WOW, again. Compare that to last year at this time when the 30 year fixed rate was averaging 4.60%. These rates are reflective of the uneasiness about a slowing U.S. ecomony plus the debt crisis in European markets.
You’ll also see the same impact on 15 year fixed rate mortages falling to a 2.89% average.
“Recent economic data releases of less consumer spending and a contraction in the manufacturing industry drove long-term Treasury bond yields lower over the week and allowed fixed mortgage rates to hit new all-time record lows,” said Freddie Mac’s chief economist, Frank Nothaft.
This is all welcoming news for the South Florida housing market that has been struggling to signal improvement. This continues to strengthens Buyer’s interest in a home purchase and brings relief to Sellers who are trying to sell their homes or who are thinking about selling their homes. Low rates gets Buyers interested in buying homes now and it gets Sellers interested in knowing that they’ll have more Buyers interested in hopefully, their home.