The fixed mortgage rate in the US is generally 30 years. During the last few years the interest rate on these loans have been steadily dropping. In fact, mortgage rates are at their lowest since 1950! The low interest rates are bringing more consumers back to the housing market which in turn is boosting the economy out of the slump that it's been in over the last 3 years.
The current average rate for a 30-year fixed rate mortgage has gone down to 3.78%. This is the lowest that long term mortgage rates have been ever since the early 1950s. And the average rate for a 15 year fixed rate mortgage, which is a very popular refinancing choice, is currently set at 3.04%.
Rates have been relatively low ever since last December when the refinance rate was still below 4%. This current decrease in the interest rate has helped out the housing industry in a major way and has also made big changes in state of our nation's economy.
Just this past April, sales for both newly built and used homes went up more than they have in the past two years. The home building industry is becoming more and more confident as time goes on in the market as they start to break ground and request more building permits than they have in several years. More single family homes are expected to be built later this year to further increase the housing industry's profits.
The fact that our nation's unemployment rate has gone down as well has had a significant impact on the housing industry. Over the past several months there have been nearly one million more US jobs added causing the unemployment rate to drop down from 9.1% to 8.1% in April.
However even though things are starting to look up for the housing industry and the nation's economy as a whole, experts say that we still have a long way to go before we can see that the market has completely healed from all of the financial burdens we have faced from the recent recession.
And even with things looking up for the housing market, it can still be very difficult for some individuals to get a home loan. Many of them may not be able to afford to make the large down payment that is required by some financial institutions or they may not have the proper credit requirements that are needed in order to qualify. Also, there are some potential home buyers that aren't sure about purchasing a new home just yet because they are waiting to see if home prices will drop down even more and become more affordable.
The recent drop in the 30-year fixed mortgage rate has allowed those in the housing market to gain a lot of hope over the past several months. These average rates are calculated by the survey results from lenders all over the country on a weekly basis. The averages do not include any extra fees that many borrowers have to pay in order to obtain the lowest rate possible.
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