For the week ending Oct. 5, the 30-year fixed mortgage rate averaged 6.30 percent, the lowest level since the week of March 2, when it averaged 6.24 percent, Freddie Mac reports.
“Mortgage rates fell to a six-month low this past week, and, not surprisingly, home refinancing rose 18 percent last week, accounting for almost half of all mortgage applications,” say Frank Nothaft, Freddie Mac vice president and chief economist. “This is due both to the recent decline in mortgage rates and to home owners who are refinancing ARMs rather than waiting for them to reset in the future when rates may be higher.”
The 15-year fixed rate this week averaged 5.98 percent with an average 0.4 point, unchanged from last week. A year ago, the 15-year rate averaged 5.54 percent. This is the lowest the 15-year rate has been since the week ending March 23, 2006, when it averaged 5.97 percent.
Even though rates have fallen recently, housing activity continues to slow, Nothaft says. That has led Federal Reserve Chairman Ben Bernanke to forecast the national economic rate of growth to lose up to one full percentage point in the last half of this year. Newer sites of interest: San Diego laser eye surgery – San Diego bail bonds
Lower mortgage rates and gas prices may help our local real estate market.
No wat are lower rates now going to have any effect on our downturn. Best bet….invest in gold..real nuggets. Check out real gold nuggets at:
http://www.california-gold-rush-miner.us
Maybe now these tough times in real estate may change the San Diego conventional wisdom that you can never lose in real estate.
Daniella
San Diego County Cosmetic Dentist
Good blog, but we have to remember that in the long term real estate always bounces back and people should take advantage of these slow periods if they really want to get a good return on their investments.
Kyle
San Diego County Law