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Mortgage Rates Drop in Response to Weak Economic Data

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25736182840_05cc495a5f_oOver the past few weeks, mortgage rate averages had increased slightly.  However, the rates actually dipped lower last week and could continue to drop further this week.   This decrease is a direct result of the release of economic data which pushed investors to purchase bonds.  Consequently, mortgage rates averages dipped in line with the long-term bond yields.

Specifically, the 30-year mortgage rate average dropped to a low 3.61 percent, hovering near the lowest rates of 2016.  Similarly, the 15-year rate average drifted down to 2.86 percent.  Freddie Mac chief economist , Sean Becketti, summarized the mortgage rate trends for the year, “…Since the start of February, mortgage rates have varied within a narrow range providing an extended period for house hunters to take advantage of historically low rates.”

An article released by the Washington Post by Kathy Orton, also noted credit availability has loosened as a result of programs from Freddie Mac and Fannie Mae which allow for a low down payment.  Read the entire article.

 

Image Credit:  Life’s A Beach Real Estate

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