MHProNews has learned from HousingWire 15 and 30-year fixed rate mortgages (FRMs) are continuing to drop to historic lows. While last year at this time a 30-year FRM was at 4.55, as of Thurs. July 26 it had dropped to 3.49% from 3.53% the previous week. While the 15-year FRM last year was at 3.66%, last week it had fallen to 2.83%. Surveying large banks, Bankrate says the 30-year FRM fell to 3.75% from 3.78%, while the 15-year FRM dropped to an even 3% from 3.04%. Meanwhile, analysts with Capital Economics are not convinced that low interest rates are necessarily good for the market. Capital’s Paul Diggle, noting there is no evidence the lower interest rates are spurring housing demand among mortgage dependent buyers, says, “The underlying improvement in sales activity remains heavily dependent on investors and cash buyers, who are attracted to housing in part because of low yields elsewhere.”
