Mortgage applications surge 25% in the new year as interest rates drop
Mortgage rates are now at historic lows, CNBC reported. The current average rate for a 30-year fixed loan is at 4.87 percent, according to Bankrate.com, the lowest rate for the 30 years since Bankrate started tracking these rates 25 years ago. This figure is slightly higher than last week’s Freddie Mac data, which put the 30-year fixed-rate mortgage at an average contract interest rate of 4.84 percent. Jumbo loan rates — loans for more than $417,000 — have fallen as well, Bankrate, an aggregator of financial rate information determined, with the 30-year fixed loan rate at 4.5 percent, down from nearly 6 percent at this time last year. The drop can be attributed to the European debt crisis, as nervous investors flock to the U.S. Treasury Securities, which influences a host of consumer interest rates, including those on mortgages, according to CNBC. But analysts say the decline in rates probably won’t last, as worries over Europe fade and investors look at other assets besides U.S. Treasury Securities. [CNBC]
