Mortgage Rates Drop Again This Week!

A drop in mortgage rates is welcome news to weary home buyers who have been beat up first by cash buyers, second by rising home prices and  third by rising interest rates on home mortgages.  All of these obstacles appear to be waning slightly making for a rosier outlook for home buyers. Freddie Mac reported Thursday that the 30-year rate fell to 5.30% from 5.70% last week. One year ago the average 30-year rate was 2.90%. The average rate on 15-year, fixed-rate mortgages, popular among those refinancing their homes, fell to 4.45% from 4.83% from last week. A year ago, the rate was 2.26%.  Fed monetary policy appears to be having the desired effect of cooling the housing market which allows buyers the time to make a clear decisions without the crazed frenzy we saw at the height of the market.