Mortgage Rates Drop for 3rd Straight Week- Easing Mortgage Credit in Sight

mortgage rates dropHousing News

Housing starts has come out strong in March 2013 with a seasonally adjusted annual rate of 1,036,000, up 7.0% from the revised February estimate and up 46.7% from March 2012. Addition of more properties into the inventory pool is always a good news for the investors.

Ellie Mae reported that the purchase market is on the rise with continued ease in mortgage credit. However, there is a general investor question on whether all lenders have actually started relaxing the standards in mortgage credit.

The Federal Reserve Beige Book release for March 2013 reported increased residential activity in most Districts, and some Districts, including Cleveland, Richmond, Chicago, Minneapolis, Kansas City, Dallas, and San Francisco, noted increased momentum since the last report.

The Gallup company conducted a survey between April 4-14, 2013, with a random sample of 2,017 adults, aged 18 and older, living in all 50 U.S. states and the District of Columbia. The results of the survey as published on gallup.com show that 51% of Americans expect average home prices in their local area to increase over the next year, a sharp increase from last year and the first time it has been above 50% since 2007.

Mortgage Rates

Freddie Mac’s 30-year fixed-rate mortgage averaged 3.41%, and the 15-year FRM averaged 2.64% for the week ending Aril 18, 2013. This marks the third consecutive week fixed-rate mortgages have moved lower as the housing market continues to recover.

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