Sunday, May 5, 2013

Mortgage Rates Continue To Fall            

Mortgage rates continued to drop last week  in Crow Wing County with the average rate of a 15-year fixed  rate hitting  an all new record low now for the second consecutive week. According to survey provider Freddie Mac, the 15-year fixed mortgage rate dropped from 2.61% the week prior to 2.56%.  Prior to these low interest rates the previous record was reached in November of last year with a rate of 2.63%, at that time this was the lowest we had seen rates since 1991.  In comparison at this time last year the 15-year mortgage rate was at 3.07%.

The most popular mortgage loan is the 30-year fixed loan, which also saw a dip in its rate last week.  The 30-year fixed rate dropped from 3.40% to 3.35%, not far away from its record low of 3.31% set last November also.

These record and near record low rates are continuing to boost the housing market here in Crow Wing County and across the nation, and it is expected to help increase our economy overall.   Freddie Mac’s chief economist, Frank Notaft, had this to say about the low rates.  “Residential fixed investment added to overall economic growth over the past eight consecutive quarters and contributed more than 0.3 percentage points in growth over the first three months of this year. Near record low mortgage rates should further drive the housing market recovery over the near term.”

Historic and near historic low rates are making the housing market attractive to homebuyers who are being confronted with a low volume of inventory homes for sale. Mortgage rates are expected to hold steady or potentially move further downward on the news that the Federal Reserve will continue to buy mortgage-backed securities and Treasures in the amount of nearly $85 million a month.

If you are looking to take advantage of historic low mortgage rates now is the time to buy a home in Crow Wing Count, contact me, Bill Grunewald. My team and I enjoy helping folks like you find just the right spot to live your northern Minnesota Lake Country dream.

 

Bill Grunewald/ Edina Realty.

Licensed in Minnesota/ Lic # 20204156