Increased demand for safe haven investments, driven by worries over the European debt crisis, have pushed yields down. Mortgage rates continue to hold at near record lows and homeowners are rushing to refinance their mortgages.
Rates on 30-year fixed-rate mortgages averaged 3.78 percent with an average 0.8 point for the week ending May 24, down from 3.79 percent last week and 4.6 percent a year ago, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey. That’s a new low in Freddie Mac records dating to 1971.
For 15-year fixed-rate mortgages — a popular option for refinancing — rates averaged 3.04 percent with an average 0.7 point, unchanged from last week but down from 3.78 percent a year ago. Rates on 15-year loans have never been lower in records dating to 1991.
The Mortgage Bankers Association is projecting “lower U.S. mortgage rates for the rest of the year and raising our refinance forecast as a result.”
With low rates generating another wave of refinancing, tight lending standards are keeping a lid on the demand. Working with a qualified mortgage broker will help you through the maze of restrictions and thus getting you the best loan to suit your needs.
Source: Inman News
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