After a three-week surge, the average U.S. rates on fixed mortgages fell, reaching almost historically low levels.
According to mortgage buyer Freddie Mac, the average rate for the 30-year loan declined to 4.28 percent from 4.37 percent last week. The average for the 15-year mortgage fell to 3.32 percent from 3.39 percent.
Real estate data provider CoreLogic released a report, indicating that U.S. home prices increased by 0.9 % in January following three months of decline. Sales were slow, nevertheless, but the prices remain steady due to the tight supply of properties.
Economists don’t seem to think that this trend will continue for a very long time, however.
As with many other aspects of America’s everyday life, the harsh winter has been a great challenge for the economy.
Back in January, sales of existing homes displayed the lowest pace in 18 months, haltered by the stormy weather, higher interest rates and rising home prices.
Moreover, the number of existing homes under contract has remained flat for January and February, a sign that March and April may be also marked by weak sales.
Read the full story at Daily Finance.