Mortgage rates fall to new lows, economy may further affect situation

July 13th, 2012


Affordability continued in to be present the mortgage market during the week ending July 12, according to a report from Freddie Mac, which may affect those searching for a relocation mortgage.

The government-sponsored enterprise's Primary Mortgage Market Survey showed that the average 30-year fixed-rate mortgage declined to 3.56 percent from the previous week's figure of 3.62 percent. In addition, the 15-year FRM declined to 2.86 percent from the previous statistic of 2.89 percent. Both figures were the lowest-ever levels recorded by Freddie Mac.

"Only 80,000 net new jobs were added to the economy last month, not enough to lower the unemployment rate from 8.2 percent," said Frank Nothaft, vice president and chief economist for Freddie Mac.

Continued issues with the economy may trigger the Federal Reserve to make significant adjustments to the economy. In part because of the European debt crisis, the Federal Reserve lowered the economic growth forecast to 1.9 percent.

If the Federal Reserve takes action on the economy, it could significantly alter interest rates, and companies involved in a corporate relocation process should keep this in mind when helping transferees look for a new residence.