June 4th, 2012
Employees evaluating mortgage services as part of a corporate relocation strategy may be able to take advantage of current economic conditions, which have driven mortgage rates to new lows once again.
According to Freddie Mac’s Primary Mortgage Market Survey for the week ending May 31, the average rates for 30- and 15-year fixed-rate mortgages slipped to 3.75. and 2.97 percent, respectively. It was the first time ever that the average 15-year rate broke the 3 percent barrier.
One year earlier, the 30-year FRM average was 4.55 percent, while the average rate for a 15-year FRM was 3.74 percent, according to the report.
“Market concerns over tensions in the Eurozone led to a decline in long-term Treasury bond yields helping to bring fixed mortgage rates to new record lows this week,” said Frank Nothaft, Freddie Mac’s vice president and chief economist.
Millan Mulraine, senior U.S. strategist for the New York-based TD Securities Inc., told Bloomberg that once more banks lower their lending standards, the housing market should see a steadier recovery take shape.
Home prices have begun stabilizing in many markets nationwide – good news for employees heading to new homes for the long-term.