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Confident consumers, mild inflation drop mortgage rates
By Palm Beach Business.com
DELRAY BEACH — Mortgage rates dropped to another record low over the past week, according to Freddie Mac.
The 30-year fixed-rate mortgage dropped to an average of 3.34 percent with 0.70 point from 3.40 percent a week ago, according to Freddie Mac’s Primary Mortgage Market Survey. Bankrate’s national mortgage survey put the 30-year at 3.54 percent with 0.34 point, down from 3.57 percent a week ago.
The average15-year fixed-rate mortgage dropped as well, to 2.65 percent with 0.70 point from 2.69 percent a week ago, according to Freddie Mac, and to 2.87 percent with 0.25 point from 2.88 percent a week ago, according to Bankrate.
"Fixed mortgage rates eased this week to record lows on indicators of higher consumer confidence and lower wholesale prices,” Freddie Mac Chief Economist Frank Nothaft said. Consumer sentiment rose in November to the highest reading since July 2007 according to the University of Michigan. Meanwhile, the core producer price index fell 0.2 percent in October."
For four years now, mortgage rates have been below 6 percent. According to Bankrate, the difference between the current average and 6 percent is enough to save a homeowner $339 a month in mortgage payments.
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