Weak Economic Data Means Good News for Mortgage Ratesadmin / 0 Comments /
Mortgage rates have retreated again in response to weak financial data and global economic concerns, according to a report released Thursday by the Federal Home Loan Mortgage Corp. Specifically, the average 30 –year mortgage rate dropped to 3.6 percent. In fact, mortgage rates have not been above 3.7 percent in the past 10 weeks. This streak has allowed home buyers more time to take advantage of these historically low mortgage rates. Consequently, loan application volume increased 9.3 percent from the previous week.
The drop in the mortgage rates is a direct result of a weak jobs report, which was released last Friday. “Growing optimism about the state of the economy was quickly erased with May’s employment report,” Sean Becketti, Freddie Mac chief economist, said in a statement. The article published in The Washington Post, by Kathy Orton, also details some of the global economic concerns which have had an effect on the direction of mortgage rates.
Read the entire article.