Mortgage Rates Sink to Record Low
June 24, 2010 at 10:40 UTC || By Forex Playmaker
Interest rates on home loans have reached the lowest level on record this week, surpassing the previous record set in December 2009.
The average rate for a 30-year home loan — the most used of home loan options — fell to 4.69% from 4.75% last week. The new rate comes in below the previous record low of 4.71% set last year.
Mortgage rates have declined steadily over the past two months, as investors have flocked to the relative safety of Treasury bonds. As a result, yields on US Government debt have been driven lower and mortgage rates have followed suit.
In the long-term, exceptionally low rates of interest are a positive for the housing sector. However, until banks resume lending, property values and home purchases will continue to decline.
