Average interest on long-term mortgages slid to a NEW record low for the eighth time in nine weeks and could dip more. Freddie Mac reports that 30-year fixed loans averaged 4.36 percent last week, down from 4.42 percent a week earlier; the 15-year fixed rate fell to a new low of 3.86 percent from 3.90 percent; and adjustable-rate mortgages were also below 4 percent. The Mortgage Bankers Association's Michael Fratantoni said the group expects that rates "will begin to rise as the economic situation improves along with jobs."
The steep drops in July that were reported last week -- in both existing home sales and new home sales -- obviously added to worries about the speed with which the real estate market may recover. National sales of new homes hit a 40-year low, and sales of existing homes hit a 15-year low!
[SOURCES: TAR and Freddie Mac; Information, Inc.]
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