US long-term mortgage rates little changed; 30-year fixed home loan at 2.93%

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US long-term mortgage rates little changed; 30-year fixed home loan at 2.93%

Virginia-based US mortgage buyer Freddie Mac issued a statement on Thursday saying that the average rates on long-term mortgages in the United States remained at a historically low level last week, eventually sparkling demands for homes.

Apart from that, Freddie Mac was also quoted saying at its Thursday statement released late on the day that the average long-term mortgage rates remained almost unchanged last week, while the popular-most 30-year fixed rate home loans had inched up to 2.93 per cent from a reading of 2.91 per cent a week earlier.

However, in contrast to the average readings of 3.49 per cent a year earlier, US mortgage rates fell by at least over 20 per cent. In tandem, the average rate on 15-year fixed home loans had been edged down to 2.42 per cent from a last week’s reading of 2.46 per cent.

Housing demands spike as one of the few bright spots in pandemic-hurt economy

Aside from that, Freddie Mac’s Thursday’s report on last week’s average long-term mortgage loans came forth as a National Association of Realtor report had shown later last week that the sales of new homes jumped as much as 14 per cent in July, suggesting a cheerful repercussion in a recessed US economy.

Notably, an intransigent rise in US housing market demand was almost entirely vectored by a multi-year low mortgage rates, while tens of thousands of Americans departing the suburbs of the United States amid a steady spike in pandemic cases across the densely populated US cities, had also played a pivotal role as US housing market continued to gain tractions that followed a spring downcast due to the forced business closures between mid-March and May.

Nonetheless, analysts were quoted saying following release of Thursday’s Freddie Mac report that the prices of both new and existing houses in the United States might step up over the last quarter of the year as the US housing markets would highly likely to fall short of a debarkation of robust demands amid a whooping upsurge in work-from-home employees and online educations across the world’s No. 1 economy.