To stimulate the slow market growth, the Fed decreases interest rates in hope new buyers will acquire more houses and current homeowners will enjoy. However, mortgage rates soared this week. 30 year fixed rate mortgage increased from last week average 3.56 percent to 3.73 percent. What caused that increase? Simple, market forces. After Fed lowered interest rates, borrowers took loans thus mortgage rates for houses could increase.
Chief Economist in Freddie Mac says that the housing market is finally improving due to the strong labor market and low mortgage rates.
There is a high probability in decreasing mortgage rates by lenders to stimulate the housing market which eventually will impact the overall economy positively.
According to SM Corridor News, a year ago in September, 5-year Treasury-indexed hybrid adjustable-rate mortgage was 3.92 percent. Now it is 3.49 percent but last week was 3.36 percent.
15-year fixed-rate mortgage was on average 4.11 percent. This week it averages 3.21 percent which is higher than last week’s 3.09 percent.
CEO and Editor in Chief.
Living in the era of dynamic tech change Asan decided to stay tuned in changes that make any person find comfort and adapt to new devices. Furthermore, gaming became his passion for spending leisure time with his close ones. Although, he has a degree in Business Administration writing for technology has been one of the precious aspects of his life