Record low mortgage rates continue to prompt housing market activity
Jul 20 2012 2:53PM
While many prospective buyers of homes for sale in Los Angeles County may be waiting to purchase a home after the summer, a new report shows rates for long-term fixed-rate mortgage loans have reached new record-lows.
Freddie Mac's Primary Mortgage Market Survey for the week ending July 19 showed the average rate for 30-year fixed-rate mortgages was 3.53 percent, down from the previous week when it averaged 3.56 percent. This time last year, the 30-year FRM averaged 4.52 percent, indicating that affordability is also up, despite rising home prices.
Additionally, the average rate for 15-year FRMs reached a new low of 2.83 percent, just lower than last week's average of 2.86 percent and notably lower than a year ago when it was 3.27 percent.
Other economic factors also influence the state of the housing market, including new construction, homebuilder confidence and inflation.
"With little signs of inflation and the Federal Reserve's "Operation Twist" keeping U.S. Treasury bond yields in check, fixed mortgage rates are remaining low and helping to stir the housing market," said Frank Nothaft, vice president and chief economist of Freddie Mac.