Interest rates at historic lows despite housing slump

Don Debat

Columnist Don DeBat weighs in on the ups and downs of mortgageland in the August issue of New Homes Magazine, which hit the stands yesterday:

With home sales slumping and 10-year Treasury note prices seesawing between 4.87 percent and 5.32 percent during June, economists had trouble getting a solid read on the direction of both the housing market and interest rates.

Following the Federal Reserve Board’s decision to keep the federal-funds rate unchanged at 5.25 percent, benchmark 30-year fixed mortgage rates eased a bit in early July after peaking at nearly 6.75 percent in mid-June.

Freddie Mac’s Primary Mortgage Market Survey pegged benchmark 30-year fixed-rate mortgages at an average of 6.63 percent in early July. Last year at this time, 30-year fixed home loans averaged 6.79 percent.

Read the full story at New Homes Magazine online.

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