• 64°

Mortgage interest rates at record lows encouraging housing recovery

WASHINGTON — Average U.S. rates on fixed mortgages moved closer to their record lows this week, a trend that has made home buying more affordable and helped sustain a housing recovery.
Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan slipped to 3.34 percent from 3.35 percent last week. That’s near the 3.31 percent rate reached in November, the lowest on records dating to 1971.
The average on the 15-year fixed mortgage ticked down to 2.64 percent from 2.65 percent last week. The record low is 2.63 percent.
The 30-year fixed mortgage rate averaged 3.66 percent in 2012, the lowest annual average in 65 years, according to Freddie Mac.
Cheaper mortgages are a key reason the housing market began to come back last year and many economists predict the recovery will strengthen in 2013.
In November, sales of previously occupied homes rose to their highest level in three years, while new-home sales reached a 2-year high. Home prices are steadily increasing, which makes consumers feel wealthier and more likely to spend.
Another reason for the recovery: the nation doesn’t have enough houses for sale. The number of new homes available for sale at the end of November was just slightly above the lowest on records dating to 1963. And the supply of previously occupied homes for sale was at an 11-year low that month.
A limited supply has created demand for new construction, which has made builders more confident.
Lower mortgage rates also have persuaded more people to refinance. That typically leads to lower monthly mortgage payments and more spending. Consumer spending drives nearly 70 percent of economic activity.
Still, the housing market has a long way to a full recovery. And many people are unable to take advantage of the low rates, either because they can’t qualify for stricter lending rules or they lack the money to meet larger down payment requirements.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for 30-year loans was 0.7 point, unchanged from last week. The fee for 15-year loans edged down to 0.6 from 0.7 point.
The average rate on a one-year adjustable-rate mortgage rose to 2.57 percent from 2.56 percent. The fee for one-year adjustable-rate loans dipped to 0.4 from 0.5 point.
The average rate on a five-year adjustable-rate mortgage ticked up to 2.71 percent from 2.70 percent last week. The fee declined to 0.6 point from 0.7.

Comments

Comments closed.

Business

With remote expansion, outsource provider FCR looks to become an ‘exceptional part’ of Rowan community

Local

City expects $1.5 million surplus in current budget, ability to raise some wages for police, public works

Education

Enochville Elementary to host farewell event May 1

High School

High school softball: Carson beats West in a wild one

College

Seahawks QB Russell Wilson will speak at NC State graduation

High School

Wonders, Trojans facing off Monday on Cannon Ballers’ field

Local

City approves two apartment developments, more than 160 new units

Nation/World

Crowds react with joy, wariness to verdict in Floyd’s death

News

Bill seeks to end pistol purchase permits from NC sheriffs

Coronavirus

Rowan County sees 300th death attributed to COVID-19

News

Chauvin convicted on all counts in George Floyd’s death

Local

Top North Carolina House finance chair, Rowan representative stripped of position

Crime

One charged, another hospitalized in fight between cousins

Local

Bell Tower Green renamed to honor Stanbacks; Nancy Stanback receives key to city

Business

Commissioners green light additional houses at Cherry Treesort in China Grove

Education

A.L. Brown will hold in-person, outdoor graduation

Local

Granite Quarry awards FEMA contract for Granite Lake Park

Local

City to vote on apartment developments, final phases of Grants Creek Greenway project

High School

High school football: North receiver McArthur a rising star

Columnists

Carl Blankenship: Pollen and prejudice make their return

News

Harris pitches $2.3T spending plan on trip to North Carolina

Nation/World

Murder case against ex-cop in Floyd’s death goes to the jury

Crime

Sheriff’s office: Man takes deputies on chase with stolen moped

Coronavirus

Afternoon, evening COVID-19 vaccination clinic planned Thursday