The average rate on the 30-year fixed loan ticked up
Credit markets showed little reaction to Washington’s impasse over raising the federal government’s borrowing limit. It made fixed mortgage rates were mostly unchanged last week. On Thursday, the average rate on the 30-year fixed loan ticked up from 4.52 percent a week ago to 4.55 percent. The average rate fixed loan was unchanged at 3.66 percent on the 15-year. It is just above the yearly low of 3.65 percent.
Mortgage rates track the yield on the 10-year Treasury note. Even though Obama administration and Congress are days away from a potential default on the government’s debt yields have been stable. Depressed home prices and low mortgage rates have done little to revive the struggling housing market. Because of bigger required down payments and tighter lending standards, there are many people simply can’t take advantage of the historically low rates. As the potential homebuyers concerned that housing prices will continue to fall, other potential homebuyers are holding off.
The housing market to rebound before 2013, few economists expect. On Monday through Wednesday of each week, Freddie Mac collects rates from lenders across the country to calculate average mortgage rates. The average rate on a five-year adjustable rate mortgage 3.27 percent last week and edged down to 3.25 percent this week. The record low of 3.22 set last month for this mortgage, and the 3.25 percent was close from it.