Mortgage rates across the country dipped to the lowest level this year. Freddie Mac said today that the average 30-year fixed-rate mortgage averaged 4.10 percent for the week with an average 0.5 point compared with 4.58 percent last year, according to its weekly Primary Mortgage Market Survey. The previous 2014 low was 4.12 percent. Other rates this week:
- The 15-year FRM averaged 3.23 percent with an average 0.6 point, down from 3.24 percent last week and 3.60 percent last year.
- The 5-year adjustable-rate mortgage (ARM) averaged 2.95 percent this week with an average 0.5 point, down from last week when it averaged 2.97 percent and 3.21 percent a year ago.
- The 1-year ARM averaged 2.38 percent this week with an average 0.5 point, up from last week when it averaged 2.36 percent and 2.67 percent a year ago.
Low mortgage rates have certainly helped boost home sales. The National Association of Realtors said today that existing-home sales last month increased 2.4 percent to a seasonally adjusted annual rate of 5.15 million in July from a slight downwardly-revised 5.03 million in June. Sales are at the highest pace of 2014 and have risen four consecutive months, but are still 4.3 percent below the 5.38 million-unit level from last July, which was the peak of 2013.
Here's what Lawrence Yun, NAR's chief economist, had to say about the situation: “The number of houses for sale is higher than a year ago and tamer price increases are giving prospective buyers less hesitation about entering the market...more people are buying homes compared to earlier in the year and this trend should continue with interest rates remaining low and apartment rents on the rise.”
In the Twin Cities metro, home sales have been down compared with last year. Closings during July were down nearly 10 percent (not seasonally adjusted), according to the Minneapolis Area Association of Realtors. Pending sales - an indication of future closings - for the week ended August 9 were down 1.3 percent compared with last year.