Mortgage rates sink to record low, but trend won’t last: Freddie

TRD New York /
May.May 27, 2010 06:30 PM

The average rate on a 30-year fixed rate mortgage dropped to 4.78 percent this week from 4.84 percent a week earlier, according to a primary mortgage market survey released by Freddie Mac. It was the lowest level since early December, when rates fell to a record low of 4.71 percent. Also this week, the average rate on a 15-year fixed-rate mortgage fell to 4.21 percent, the lowest level in almost two decades. Analysts attribute the drops to the European debt crisis, which has also caused yields for 10-year and 30-year Treasury bonds to dip to their lowest levels of 2010. But once Europe springs back and the U.S. economic recovery stays on track, rates are likely to move higher since traders will move their money back into riskier investments, analysts predict. “These low rates will help to elevate homebuyer affordability and soften the effects of the sunset of the homebuyer tax credit,” said Frank Nothaft, vice president and chief economist at Freddie Mac. “The credit substantially propelled home sales, as reflected in the strength of the April existing and new home sales, which were up 7.6 percent and 14.8 percent, respectively.” TRD

 

Related Articles

arrow_forward_ios
Refinancings spur mortgages to record high

The mortgage industry is booming

Some investors continue to find U.S. commercial real estate as attractive places to park their capital (Credit: iStock)

Brexits and Bubbles: How investors view Europe’s shaky real estate market

The bank is accused of systematically trying to foreclose on mortgages after the state’s six-year statute of limitations had passed. (Credit: iStock)

BNY Mellon faces suit over foreclosures from the housing crash

Seattle, Washington (Credit: iStock)

Good luck buying an affordable home in these US cities

They’re just like us! “Billionaire” manse buyer takes out $58M mortgage

They’re just like us! “Billionaire” manse buyer takes out $58M mortgage

Buyer sentiment was strong at the close of 2019 (Credit: iStock)

Home buyers start 2020 with drop in mortgage rates

(Credit: Getty Images, iStock)

Small Talk: Real Estate Predictions for 2020

Many are predicting a housing bubble (Credit: iStock)

Europe could be headed toward a housing crisis

arrow_forward_ios
Loading...