Mortgage Rates Down Again

The average rate for mortgages has fallen yet again as the housing industry goes into winter hibernation. The average national rate for a 30-year fixed mortgage dropped to 6.31, lower than the same time last year when the rate was 6.37. The 30-year rate is the same as it was four weeks ago, prior to a small hike in rates in the middle of October. The national average for a 15-year fixed rate mortgage also declined to 6.02 and the rate for a 5/1 ARM fell to 6.13.

The fall in rates seems to be in response to a lagging economy, as well as current trends in the housing market. Home sales are still much slower when compared to last year, with the average home sitting on the market for six to eight months before going under contract. New homes sales are at a three-year national average low, and existing home sale values are experiencing another slight drop. Though buying and selling homes are on the decline currently, the drop in mortgage rates is boosting refinances, which are accounting for almost 60% of all new mortgage applications.\r\n