Mortgage rates hit a low of 4.15%

August 23rd, 2011 - 12:50 am ICT by Aishwarya Bhatt  

Washington, Aug 22 (THAINDIAN NEWS) US 30 year mortgage rate reached its lowest level last week at 4.15 percent. This is the lowest level of US mortgage rate since 1971. In the previous week, the rate was 4.32 percent. Last November, the rate for the most popular mortgage was 4.17 percent.

Home buyers are not patronizing new homes, the market watchers say. For the third time in the last four months, new home sales have gone down. According to data from the National Association of Realtors, the US house sales lost 3.5 percent which pushed the US annual home sales to 4.67 million. Economists say for a healthy housing market, the annual rate should be at least 6 million homes.

The current rate is one of the lowest in recent memory. It compares to the lowest rates in the 1950s when the 30-year mortgage was not available.

Despite the fact that the mortgage rate has stayed below the five percent mark for more than a year, it hasn’t affected the housing economy so much. The US economy has been affected by the slow growth of the US housing market.

2011 has been one of the worse for the US housing market.

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