U.S. Mortgage Rates Decrease, Single-Family Home Sales Rise

Agency lender Freddie Mac reports that average mortgage rates on a 30-year fixed loan fell to 4.31% after reaching a high of 4.51% two weeks ago. Although the rate has cooled slightly from that two-year high, it remains nearly 100 basis points higher than it was in early May 2013. For 15-year fixed loans, the rate decreased to 3.39% from 3.41% last week.

Although mortgage rates have risen since the Federal Reserve indicated it could slow its $85 million/month bond purchases, they remain low from a historical perspective. With people taking advantage of the historically low rates, new single-family home sales rose 8.3% nationwide in June to a seasonally adjusted rate of 497,000 annually, the highest level in over five years.

Read the full article at the SF Gate