WASHINGTON, D.C. – May 22, 2015 – (RealEstateRama) — While mortgage rates increased slightly this year, the latest Freddie Mac report showed low rate mortgages are here to stay for now. Interest rates for 15- and 30-year fixed-rate mortgages both decreased the week ended May 21 week over week, according to Freddie Mac.
The current interest rates for both fixed-rate mortgages are lower than they were in the same period last year. This is a positive sign for first-time home buyers hoping to lock in a low rate mortgage as they purchase homes. With these rates still down close to their historic lows, home buyers are more likely to afford the homes they want.
In addition to the low rates, Freddie Mac highlighted growth in the home building industry, citing the U.S. Census Bureau and the Department of Housing and Urban Development report for new residential construction.
“Mortgage rates were little changed this week amid positive housing news,” Freddie Mac Deputy Chief Economist Len Kiefer said in a statement. “Housing starts surged 20.2 percent to a seasonally adjusted pace of 1.14 million units in April, the highest level since 2007.”
The HUD report showed that not only did housing starts rise, housing completions increased 20.4 percent in April compared to the previous month. There were a total of 986,000 housing completions in April at a seasonally adjusted rate. This represents an almost 20 percent gain from April 2014.
With a greater supply of new homes in the housing sector, house hunters are more likely to find their ideal abode and better afford it with a great mortgage rate.
For more information on applying for a low rate mortgage, first-time home buyers and other potential homeowners can contact the Federal Savings Bank, a veteran owned bank, to learn more about mortgages