Fixed Mortgage Rates Declined To 2011 Lows

fixed rates on mortgages declined

This week the fixed mortgage rates have declined and the rate on the 15-year home loan fell to its lowest point of the year. Typically, the rates track the yield on the 10-year Treasury note. Last week the dismal information concerning jobs forced investors into the safety of the federal bonds resulting yields to fall sharply. Prices rise making yields fall.

Struggling Housing Market

The depressed home values and low rates on mortgage cash advances have done almost nothing for the housing market revival. A lot of people have no opportunity to take advantage of the low rates due to the higher downpayment requirements and tighter lending standards. The lenders are rather cautious as high unemployment and weak economy increase the possibility for some borrowers to default. In addition, some potential homebuyers consider that the prices on homes will go on falling and just hold off.

Only some of the economists expect that the housing market will rebound before 2013.

Calculation Of Average Rates

In fact, Freddie Mac calculates the average rates on mortgage advance cash loans collecting the rates from lenders nationwide on Monday through Wednesday of each week. Thus, the rates usually fluctuate greatly even within a single day.