Mortgage Rates for 30-Year U.S. Loans Decline to Nine-Month Low
By Ashwin Seshagiri - Aug 11, 2011 7:12 AM PT Thu Aug 11 14:12:46 GMT 2011Mortgage rates for 30-year loans in the U.S. declined to a nine-month low as concern grew that the nation’s economy is slowing.
The average rate for a 30-year fixed loan dropped to 4.32 percent in the week ended today from 4.39 percent, according to Freddie Mac. The average 15-year fixed-loan rate fell to 3.5 percent, the lowest on record, from 3.54 percent, the McLean, Virginia-based mortgage-finance company said in a statement.
Borrowing costs are declining as the U.S. economic recovery shows signs of faltering. Federal Reserve policy makers pledged Aug. 9 to keep interest rates at record lows through mid-2013 to bolster an economy that was growing “considerably slower” than they previously projected. The yield on the 10-year Treasury note, a guide for consumer loans including mortgage rates, hit an all-time low after the Fed’s announcement.
“The economy is going to remain weak for quite some time,” Paul Dales, senior U.S. economist at Toronto-based Capital Economics, said in a telephone interview. “You have to look at the impact on confidence. The big issue is the inability or unwillingness of people to borrow or buy a home.”
The rate for a 30-year fixed mortgage is the lowest since the week ended Nov. 11, when it was 4.17 percent, the lowest in Freddie Mac records dating to 1971.
Saturday, August 13, 2011
Mortgage Rates for 30-Year U.S. Loans Decline to Nine-Month Low - Walnut Creek MortgageNews
via bloomberg.com
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