Recent numbers from Freddie Mac illustrate that mortgage rates are holding at record lows in the midst of an unsteady U.S. bond market, with 30-year fixed mortgages averaging 4.79 percent for the week ending June 3, up 0.01 percentage points from the prior week but half a point lower than last year. This is in close proximity to the all-time low of 4.71 points reached last December, corroborating that 30-year rates have remained mainly unmoved. Similarly, 15-year fixed-rate mortgages have shown new record lows reaching 4.20 percent, which is considerably lower than the 4.79 percent average of the previous year. Since 1971 and since 1991, Freddie Mac has been tracking 30-year and 15-year mortgage rates.
Bob Lipply who brokers Eastlake Woodlands homes says that the trend of low prices and financing choices on homes has no intentions of changing, keeping the environment beneficial for new buyers. A sizeable recovery in the housing market that took place several weeks past was later credited to consumers securing the homebuyer tax credit before the deadline of April 30th. A 13-year low soon followed the “recovery.” Freddie Mac chief economist Frank Nothaft and other analysts are of the belief that this is a temporary decline, acknowledging that growth for the first three months of the year fell short of expectations. However the housing market has shown signs of being on the right path to recovery; it will be a slow one with inflation remaining stable.