Why Mortgage Rates Are So Low
Oct. 22, 2012
The latest business reports say that housing conditions are improving. Yet mortgage interest rates remain low. MarketWatch writer Amy Hoak takes a look at why mortgages are as they are, as she writes:
“Glimmers of hope in the housing market suggest a turnaround is near, with statistics showing stabilizing home prices and an increasing number of home sales.
Yet even as housing conditions improve, mortgage interest rates remain near record-low levels.
Rates on a 30-year fixed-rate mortgage averaged 3.71% for the week ending June 14, according to Freddie Mac’s weekly survey of conforming rates. Before that week, rates had broken record lows for six weeks in a row.
It’s a situation that seems to defy supply-and-demand logic: If there’s more demand in the housing market, wouldn’t the cost of borrowing funds to buy a home be on the rise?” Continue reading the article here.
