Mortgage Rates for 30-Year U.S. Loans Decrease to 4.80%
Mortgage rates for 30-year fixed U.S. home loans fell for the first time in five weeks, decreasing borrowing costs as all-cash buyers make up a growing share of the housing market.
The average 30-year rate dropped to 4.80 percent in the week ended today from 4.91 percent, according to Freddie Mac. The 15-year rate averaged 4.02 percent, down from 4.13 percent a week ago, the McLean, Virginia-based mortgage-finance company said in a statement.
The housing market is under pressure from unemployment near 9 percent, stricter loan rules and mounting foreclosures. Sales are strongest for homes below $100,000, reflecting increased demand from investors, Lawrence Yun, chief economist for the National Association of Realtors, said yesterday in Washington.
Sales of existing homes increased 3.7 percent in March, with all-cash deals accounting for 35 percent of transactions, the highest since monthly tracking began in August 2008, according to Yun. Distressed properties, which include foreclosures and short sales, made up 40 percent of all deals.
Mortgage applications climbed 5.3 percent in the week ended April 15, according to the Mortgage Bankers Association. The Washington-based group’s measure of refinancing gained 2.7 percent, while its index of purchases rose 10 percent.
The average rate for a 30-year fixed loan is below where it was last year at this time, when it averaged 5.07 percent, according to Freddie Mac. It hit a record low of 4.17 percent in November.
To contact the editor responsible for this story: Kara Wetzel in New York at kwetzel@bloomberg.net
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