Freddie Mac reported yesterday that with better than expected economic good news coming in, the rates for 30-year home loans dropped a bit this week.
Currently, the average rate on a 30-year fixed home loan is 5.22 percent which is down from the previous week which was 5.25 percent. It's hard to imagine that this time last year the 30-year fixed rate was 6.52 percent.
When there is a drop in mortgage rates they can jump refinance activity and at the same time make home buying even more attractive. The record low for a 30-year mortgage rate was 4.78 percent from earlier this year.
Freddie Mac further reported that the economy slowed by an annual rate of 1 percent in the second quarter of this year which was better than most market forecasters had predicted.
Also, homebuyer demand increased which was aided by high levels of housing affordability and inventory.
The 15-year fixed-rate mortgage also fell this week to 4.63 percent down from 4.69 percent the previous week.