According to the recent Freddie Mac survey of lenders published on Thursday, mortgage rates increased slightly, the Los Angeles Times reported.
The average rate for a 30-year fixed loan posted at 3.68 percent from a slightly lower 3.65 percent rate last week. For the shorter term of 15 years for mortgage loans, the rates are at 2.94 percent, jumping a little from last week's 2.92 percent rates, the news site noted.
This is the sixth straight week that these mortgage rates fall within or even lower than 3.7 percent---including the longer term loan of 30 years, according to LA Times. Such low rates are unheard of many years ago. To illustrate, the news site stated that the 30-year fixed mortgage rate was 8 percent two decades ago and three decades ago, they were 13 percent or 3.5 times greater than the recent rate.
In a statement, Len Kiefer, deputy chief economist at Freddie Mac, explained that the reason for rising rates is when economic indicators show the economy is performing well. Kiefer added that recent news was "mixed." For instance, he said that growth in 2015Q1 was at 0. 2 percent, and fall very much below expectations.
Yet, certain economic indicators reportedly showed good economic conditions. Kiefer added, "However, the National Assn. of Realtors' pending home sales index rose 1.1% in March for the third consecutive month. The S&P/Case-Shiller National House Price Index also rose 5% in February on a yearly basis."
Recently, CNBCalso noted that the pending home sales in March was actually at its highest level since June, 2013.
"Demand appears to be stronger in several parts of the country, especially in metro areas that have seen solid job gains and firmer economic growth over the past year. While contract activity being up convincingly compared to a year ago is certainly good news, the increased number of traditional buyers who appear to be replacing investors paying in cash is even better news. It indicates this year's activity is being driven by more long-term homeowners," Lawrence Yun, NAR chief economist, told CNBC.
Citing the Case-Shiller Home Price Index that tracks all nine Census divisions, Forbes reported that home prices rose in February by 4.2 percent at the national level. However, it added that another index tracking 10 cities reported a gain of 5 percent in February, compared to a 4.5 percent jump in January.
The recent Case-Shiller study showed a rise in home prices but, it also indicated that home prices continue its steady rise, noted Realtor.com.
The rise in pending home sales is such a great news for the housing market that suffered a huge blow during winter. Several economists generally find the rise on home prices as a positive development, as reported here on Realty Today.
However, the statement of David Blitzer, S&P Dow Jones Indices managing director and chairman of the Index Committee, still echoes and exposes another angle of the news.
"Home prices continue to rise and outpace both inflation and wage gains," said Blitzer, as stated on Realtor.com.
