Rock bottom mortgage rates
According to Freddie Mac, the average 30-year fixed mortgage is at the lowest ever rate for the seventh time in eight weeks. The rate is now 3.66 percent down from 3.71 percent last week. The average rate on 15-year fixed mortgages is 2.95 percent, nearly matching the record-low rate of 2.94 percent from two weeks ago.
Chad Wandler, a spokesman for Freddie Mac, says ”the Fed’s extending Operation Twist means we are in for very low mortgage rates for a while to come, so for people who are looking to buy or refinance this is great news.”
Existing home sales down a bit
There were fewer existing home sales in May than there were in April of this year. But sales are still nearly 10 percent higher than they were at this time last year.
The one bit of good news is that that the glut of homes available remains at recent lows. At the current rate of sales it would take about 6 months to get rid of all the homes for sale.
The slowdown raises concerns that the anemic job recovery could be impacting the housing market.
As economist Diane Swonk puts it, “the housing recovery continues, but unevenly.”