Mortgage rates were back to breaking records for the second consecutive week. All mortgage products, except for the 5-year adjustable-rate mortgage, averaged a new record low, Freddie Mac reports in its weekly mortgage market survey.
For those who can qualify, the low rates are helping to keep home buyer affordability high and refinancing strong, Freddie Mac reports.
“Fixed mortgage rates continued to decline this week, largely due to the Federal Reserve’s purchases of mortgage securities, and should support an already improving housing market,” says Frank Nothaft, Freddie Mac’s chief economist.
The Fed recently announced it would purchase $40 billion in mortgage-backed securities every month until the economy shows more improvement. The move is expected to send rates lower.
– Daily Real Estate News | Friday, September 28, 2012
This is good news for Buyers, who are looking for homes in scarce market. They still have time to find the right home and take advantage of record low interest rates. Homeowners are also taking advantage by re-financing their mortgages, and even investigating home equity lines of credit again.