Thursday, October 21, 2021
International

US mortgage rates fall for a second straight week

mortgage rates

The rate for a 15-year loan slumped to 2.35% from 2.42% last week

Mortgage rates fell for a second straight week amid signs of economic improvement. Mortgage buyer Freddie Mac reported Thursday that the benchmark 30-year home-loan rate dropped to 3.04% this week from 3.13% last week. At this time last year, the long-term rate was 3.31%.

The rate for a 15-year loan, popular among those looking to refinance, slumped to 2.35% from 2.42% last week.

Last week’s decline was the first in more than two months. Mortgage rates have been at historically low levels, but strong demand and low supply of available homes have pushed prices higher in recent years. The coronavirus pandemic has fuelled demand for single-family homes as people look for more space.

Experts expect home-loan rates to rise modestly for the rest of the year, while remaining at low levels in light of the Federal Reserve’s stated intention to keep its principal borrowing rate near zero until the economy recovers from the pandemic.

A flurry of key U.S. economic data on the pace of layoffs, retail sales and manufacturing, point to an economy that is steadily regaining its health as vaccinations accelerate, business restrictions are lifted in many states and Americans are increasingly willing to travel, shop, eat out and otherwise spend again. At the same time, the pandemic is holding back some areas of the economy, and many lower-income Americans are still suffering.

In another positive economic indication, the Labor Department reported Thursday that the number of Americans applying for unemployment benefits tumbled last week to 576,000, a post-COVID low and a hopeful sign that layoffs are easing as the economy recovers.

Important:

The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply

14 − 13 =