Dedikodu, Ekonomi, Haberler, Kültür, Özgürlük, Sağlık, Toplum, Yemek

Race for the home: US mortgage lending at the peak of 7 years

House for sale. Signs of a strengthening economy boosted consumer confidence. Photo Archive: Bloomberg

Freddie Mac, the government-appointed mortgage agency, announced today that the average interest rate on a 30-year fixed-repayment mortgage was 4.61 percent, up from 4.55 percent last week. This is the highest rate since May 19, 2011. By comparison, the 30-year mortgage rate was 4.02% a year ago. The average 15-year fixed-rate mortgage rate also climbed to 4..08% from 4.01% a week ago. 

Recent signs of a strengthening economy and rising commodity prices (fuel prices at a four-year high) apparently boosted earnings on bonds and mortgage rates rose. The US consumer price index rose at a steady pace in April, as consumer spending rebounded in the last two months after weak months in January-February, and may continue to pick up in the current quarter. Of 2018.

FREDDY MAC. The company claims that a 5% interest rate hike could put psychological pressure on potential buyers. Photo: AP

Despite the rise in the prices of loans and homes, the demand for home purchases has risen so far this spring. All this, while the economic outlook continues to improve and strengthen the confidence of consumers. Still, “inflationary pressures and the expectation that the interest rate will rise to 5% could start psychological pressure on some potential buyers,” Freddie Mac chief economist Sam Cutter said.

Facebooktwittergoogle_pluspinterestlinkedin