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Home loan rates declined for the fourth consecutive week and the benchmark mortgage product reached its lowest level in 2019, as turmoil in financial markets meant that home hunters stayed off.
Freddie Mac said Thursday that the 30-year fixed-rate mortgage stood at an average of 4.06% for the week of May 23rd. This was down 1 basis point, but the popular loan product was brought down to its lowest level in two months. So far this year, the 30-year period has increased in just six weeks.
The 15-year fixed rate mortgage averaged 3.51%, down from 3.53%. The five-year hybrid hybrid adjustable rate mortgage rate averaged 3.68%, compared to an average of 3.66%.
Fixed rate mortgages are in accordance with the 10-year US Treasury Note.
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, although they are a little behind the movements of the bond market.
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The 10-year yield reached its lowest level in 18 months, mainly due to the intensification of the trade war between the US and China and growing signs of slowing domestic growth. Data released Thursday showed a May survey of manufacturing industries at the lowest level in nearly 10 years.
The housing market has gone through the weak point that it had encountered in 2018, but some familiar headwinds are currently limiting growth. Sales of previously owned homes have risen in just one month in 2019 to the present, the National Association of Realtors said Tuesday, but homes are disappearing from the market, indicating that larger inventories would likely increase the price. sales volume.
And despite the overall strength of the economy, Americans are not up to it. A recent survey of debt relief provider Freedom Debt Relief found that consumers were facing many barriers to home purchase this year. The biggest problem, with 28% of respondents, was the cost of the down payment, but 26% said the monthly payment was a concern. About 11% said the number of housing units matching my needs was insufficient and 14% said they were not sure about the economic situation.
A small advantage of low rates: a resurgence of rate refinancing. According to the Mortgage Bankers Association, refinancing rose 8% in the most recent week, reaching its highest level in more than a month. Purchase mortgage applications have declined, even when rates have fallen. "We are paying attention to the potential negative effects of ongoing global trade disputes on aggregate demand," the group said on Wednesday. "Some potential buyers may delay their home search until there is more certainty."
See: Four Years, $ 13 Million and Dozens of Hands: How "Affordable Housing" is Made in the United States
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