Mortgage rates steady at affordable levels

Fixed mortgage rates experienced marginal changes during the week ending September 6, despite economic shifts leaving many investors uncertain about the future of the economy.

Fixed mortgage rates experienced marginal changes during the week ending September 6, despite economic shifts leaving many investors uncertain about the future of the economy.

The average rate for a 30-year FRM edged lower to 3.55 percent, from 3.59 percent a week earlier, according to a Primary Mortgage Market Survey from Freddie Mac. Meanwhile, 15-year FRMs remained unchanged at 2.86 percent. This was well below the same time last year, when the average was 3.33 percent.

"Mortgage rates were little changed over the holiday week amid mixed economic data releases," said Freddie Mac vice president and chief economist Frank Nothaft.

Consumer spending increased 0.4 percent during the month of July, Nothaft added. In addition, the overall confidence level also experienced a notable gain in August. These two developments could cause a number of prospective homebuyers, who have been waiting on the sidelines for their financial situations to improve, to finally purchase property.  

Further, public property data indicates that home prices may have finally hit bottom and could continue to appreciate in the coming year. This may be a consideration many potential buyers keep in mind, and could urge them to purchase homes before prices appreciate further.



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