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Mortgage Rates Continue Downward Trend

14 May 2014, 08:00

In December, 2013 there was a slump in the sale of new homes. This was caused by reports doing round that the economic recovery was not doing as well as expected and was, in fact, weakening. This has resulted in mortgage rates decreasing for many popular loans. Another study has not helped matters any. It showed a drop in home prices in November, 2013 for four weeks running. The two reports have reinforced the opinion of some experts that home prices cannot see a large upswing in the short-term. The weak state of housing market and the downtrend in economy seem to play a part in their conclusion.  However, mortgage rates will see a surge in the long-term in 2014. 30-year fixed loans saw a dip in the average rate this week from 4.39% to 4.32% as indicated the latest survey from Freddie Mac, the mortgage buyer.  The rate was 4.51% on an average one month ago. The rate for a 30-year fixed rate loan a year ago was 3.53%. It is 0.79% less than today’s rate. In its fourth consecutive decline, a 15-year fixed loan also saw a decline in the average rate. That is a reduction of 0.04% at 3.44% from 3.40%. A year ago it was 2.81% and the average a month ago was 3.56%. Reports indicated the hybrid adjustable-rate mortgages on average were mixed. A week ago, the 5-year ARM went for a slight increase but went down from 3.15% to 3.12%. Averages on hybrid adjustable-rate mortgages were mixed. After…

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