real estate investing

Tuesday, August 02, 2005

Interest Rates Drop...Again

Interest Rates on 30-year mortgages decline again this week, falling for the 10th time of the last  12 weeks.

Mortgage purchaser Freddie Mac said Thursday its weekly that interest rates on 30-year, fixed-rate mortgages averaged 5.57%, down from 5.63% last week. It was the second-best interest rate recorded this year.

The decline in mortgage interest rates over the past two months has helped push sales of both new homes and existing homes to record levels this year.

The National Association of Realtors reported Thursday that sales of previously owned homes declined a tiny 0.7% in May after hitting an all-time high in April. However, the May sales pace of 7.13 million units at a seasonally adjusted annual rate was the second-highest level on record.

"The housing market still has a good head of steam," said Frank Nothaft, chief economist at Freddie Mac.

"Given that mortgage rates aren't expected to move too much in either direction any time soon, we fully expect the housing market will continue to thrive well into the foreseeable future," Nothaft said.

Originally Posted on 8/2/2005 4:37:56 PMContent source:


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