The cost of a 30-year fixed mortgage rate has reached 4% or lower for a fourth straight week but those cheap rates have failed to boost home sales.
According to national insurer Freddie Mac the cost of a 30-year fixed mortgage rate fell to 3.98 percent, down from 4% the week prior but still ahead of the 3.94% rate witnessed just seven weeks earlier according to the National Bureau of Economic Research.
The cost of a 15-year fixed mortgage rate also edged down on Sunday to reach 3.3 percent, down from 3.31 percent during the last week but still .05 percent above the seven week low of 3.26 percent.
While rates have remained fairly stagnant over the last year they have managed to remain below 5 percent although home sales are expected to be the worst one year period for sales in the last 14 years. Last week applications fell by 1.2 percent compared to the week prior.
According to ABC News:
“Mortgage rates track the yield on 10-year Treasury note. The yield fell this week as investors shifted money into safer Treasurys amid uncertainty in the U.S. economy and fears Europe’s debt crisis could worsen. Treasury yields fall when buying activity increases.”
With high unemployment and a lack of available jobs the home purchasing situation isn’t expected to increase over the coming months as Americans pull back from resource heavy investments while others can’t afford to refinance because of lost jobs and secondary incomes.
For buyers looking to take advantage of the five-year adjustable rate market the current price sites at just 2.91 percent, down from 2.97 percent while a one-year adjustable loan can be financed at just 2.79 percent, down from 2.98 percent one week earlier.
Freddie Mac estimates are provided on a week-by-week basis.
[Image via ShutterStock.com]