Mortgage rates hit another record low
New York, NY, United States (AHN) – Rates for U.S. 30 year mortgages dropped to the lowest level on record as the number of homeowners seeking to reduce their monthly payments soared.
The average rate for a 30-year fixed loan for the week ending Jan. 19 fell to 3.88 percent, an all time record low, and down from 3.89 percent in the prior week, according to mortgage giant Freddie Mac.
The average rate on 15-year mortgage edged up slightly, ending the current week at 3.17 percent, a hair higher than last week’s 3.16 percent.
Refinancing applications soared 26 percent in the period ending Jan. 13, the highest level since August 2011, the Mortgage Bankers Association reported. The Washington based group noted that the measure of  purchase applications rose 10 percent.
The news is very welcome for the ailing U.S. housing market which has been weighed down by an 8.5 percent unemployment rate, tight credit and foreclosures that drag down prices.
Other bright spots include the rising confidence among U.S. home builders, which increased in January to the highest level in more than four years, and signs that buyer traffic has picked up, according a report released Wednesday by the National Association of Home Builders.
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