If you were worried about the effect current mortgage interest rates may have had on your home for sale, you may be feeling a little better this week. As of July 18th, 2013, the Freddie Mac Primary Mortgage Market Survey(R) (PMMS®) reports that average fixed mortgage rates are showing reductions.
“Fixed mortgage rates fell as Federal Reserve (Fed) Chairman Bernanke helped ease market concerns about the Fed reducing its bond purchases. During a question and answer session following a speech on July 10th, Chairman Bernanke indicated that a highly accommodative monetary policy is what’s needed in the U.S. economy,” said Frank Nothaft, Freddie Mac’s chief economist and vice president.
Nothaft further reported that, “Indications of a slowing in the economic recovery also placed downward pressure on mortgage rates. Consumer sentiment fell to a three month low in July while retail sales in June grew by only 0.4 percent, which was half of the market consensus forecast. In addition, housing starts fell in June to the slowest pace since August 2012.”
While it’s impossible to determine how low and how long mortgage rates will dip, this decrease allows for slightly more buying power for those seeking to purchase a home, when compared to last week, resulting in more home inventory choice as determined by pricing. So, if you are in the market to sell your home, you may notice a renewed flurry of interest.
The 30-year fixed-rate mortgage dropped to an average 4.37% (0.7 point) and the 15-year average fixed rate mortgage decreased to 3.41 percent (0.7 point). Even the 5-year Treasury-indexed hybrid adjustable-rate mortgage was lower, at 3.17 percent (0.6 point). However, the 1-year Treasury-indexed ARM remained the same as last week, at 2.66 percent (0.4 point).
Click here to compare mortgage rates throughout 2013.