Fixed mortgage rates in the U.S. set new record lows again this week, with the average on the 30-year loan dropping to 3.62 percent, down from 3.66 percent last week. Again, that percent is the lowest since long-term mortgages began in the 1950s. The historically low rates may help provide incentive for buyers in a recovering housing market.
The 15-year mortgage average fell too, down to 2.89 from last week’s record of 2.94 percent. The dropping rate on the 30-year loan has fallen or matched record low levels in the past 10 of 11 weeks and has stayed below 4 percent since December. Low mortgages have helped provide stability and a boost to the housing market which has long-suffered, however numbers this year show it strengthening slowly but surely with each passing month, with home prices rising in most markets and builders seeing more home builds starting at a faster pace.
The number of people who signed contracts to buy previously occupied homes rose in May, matching the fastest pace in two years, the National Association of Realtors reported last week. That suggests Americans are growing more confident in the market.