One interest rate that most Americans can appreciate is the 30-year fixed mortgage rate.
“At 4.21%, the 30-year fixed-rate mortgage is at its lowest since the week of November 7, 2013,” said Freddie Mac in their new weekly report on national mortgage rates. Last week, it averaged 4.29%. A year ago, it was 3.42%
Since the housing market crashed, the Federal Reserve has used extraordinarily easy monetary policy to keep interest rates like mortgage rates low in its effort to bolster the housing market and stimulate the economy.
Lately, various housing-market metrics such as existing-home sales, new-home sales, and mortgage applications have all been flagging. Last week, we learned that the U.S. homeownership rate was at a 19-year low, and some experts think it will never come back.
“One cautionary note, though, is that readings on housing activity — a sector that has been recovering since 2011 — have remained disappointing so far this year and will bear watching ,” said Fed Chair Janet Yellen in her testimony to Congress this week. “The recent flattening out in housing activity could prove more protracted than currently expected rather than resuming its earlier pace of recovery.”
Hopefully, these low, falling rates will hlep get the market humming again.
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