New Year begins with record-low mortgage rates

January 3rd, 2013

Low rates during the new year may entice people to move toward homeownership.

Studies show that mortgage consultants may have a busy year ahead of them, as rates drop to new lows and buyers are eager to attain homeownership while home prices are strengthening.

The latest data from Freddie Mac reveals that rates for a 30-year fixed-rate mortgage fell to 3.34 percent for the week ending January 3, 2013, down from 3.35 percent a week earlier. During the same period in 2012, the 30-year FRM averaged 3.91 percent. Rates for 15-year fixed-rate mortgages also fell, dipping to 2.64 percent from 2.65 the week before. The 15-year rate has fallen significantly from 3.23 percent one year ago.

“Mortgage rates started the year near record lows which should continue to aid the ongoing housing recovery,” said Freddie Mac chief economist Frank Nothaft. “New home sales rose in November to a two-year high and were up 15.3 percent from the previous November. Similarly, pending sales on existing homes increased for the third month in November to the strongest pace since April 2010.”

Economists predict home prices will continue to strengthen over the course of the year, marking good news for existing owners and buyers who want to build significant equity in their investment.