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U. S. Mortgage rates drop to 4.32%

By Dusty Wright     Oct 3, 2013 in Business
The Fed’s decision to continue its economic stimulus program unabated has sent fixed mortgage rates plunging to their lowest level in two months.
According to Freddie Mac, 30-year loan mortgage rates have dropped to 4.32 percent from 4.5 percent a week earlier. Similarly, 15-year fixed mortgages plunged to 3.37 percent during the last week of September, down from 3.54 percent the prior week.
The decrease in rates is being attributed to the Fed’s decision to continue its economic stimulus program. The Fixed mortgage rates are at their lowest level in two months.
The U.S. central bank is buying $85 billion a month in Treasury securities and bonds backed by mortgages. The Federal Reserve’s effort is reducing interest rates, which the bank hopes will stimulate the economy by making it cheaper for consumers and businesses to borrow.
Given the rise in U.S. home values, American homeowners are making mortgage payments a priority, according to a new study by credit reporting agency TransUnion.
The steady rise in U.S. home values is increasingly motivating homeowners to make paying their mortgage on time a priority, according to a new study. After looking at the data of nearly 20 million consumers, TransUnion said that borrowers were more likely to make timely payments on their auto loans ahead of credit cards and home loans.
However, in 2012 the late-payment rate on mortgages nearly closed the gap with credit cards.
The Federal Reserve’s decision to continue its assets purchases have kept long-term rates low. Cheaper credit has also resulted in millions of Americans buying homes, giving a resurgence to home values this year.
Mortgage rates are only one factor that buyers consider when deciding whether or not to purchase a house. Job security, cash windfall, career prospects, and family considerations serve as important factors. Economists say stronger job growth is needed so that people can afford to buy new houses.
More about Mortgage, home mortgage, Freddie mac, Federal reserve, transunion
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