Freddie Mac officials announced yesterday that U.S. mortgage rates dropped this week after two months of steady increases.
Still at historically low levels, the average 30-year fixed rate was 4.77 percent compared to 4.86 percent last week and the average 15-year rate dropped from 4.20 percent to 4.13 percent.
The decreases seen this week are most likely due to unusual trading in mortgage-backed securities and as a result drive mortgage rates. Day-to-day trading of bonds has been quite temperamental lately.
Experts agree that the market is working properly and that consumers should really focus on the steady climb of mortgage rates over the past two months, which shows an increase in consumer confidence.
Any declines in lending rates could possibly signal further weaknesses in the economy, but on a positive note the decreases are considered good for potential homebuyers if they can qualify for home loans.