February 15th, 2013
Prospective borrowers continue to see ideal lending conditions, as mortgage rates remained low during February.
The latest Primary Mortgage Market Survey from Freddie Mac found that average fixed mortgage rates have remained at record low levels for the past three weeks, which may prompt more would-be homeowners to enter the market. The data shows that 30-year FRM averaged 3.53 percent for the week ending February 14, 2013. This is an improvement from the 3.87 percent rate that was the national average during the same period in 2012. Rates for 15-year FRM also remained unchanged from last week at an average 2.77 percent. This figure is down from 3.16 percent last year.
“Mortgage rates remain near record lows and continue to support housing demand, translating into a pick-up in home prices in most markets,” said Freddie Mac chief economist Frank Nothaft. “The median sales price of existing homes rose 10 percent between fourth quarter 2011 and 2012, the largest year-over-year gain in seven years.”
The Federal Reserve Board has affirmed it will keep mortgage rates low through 2014, and possibly 2016 if the market is still in a state of recovery.