Mortgage rates hit new 2014 low

The average rate on a 30-year fixed-rate mortgage was 4.1 percent this week, down from 4.12 percent.

By MSN Real Estate partner Aug 21, 2014 8:52AM

© Exactostock/SuperStockBy Prashant Gopal, Bloomberg

 

Mortgage rates in the U.S. dropped for a second week, sending 30-year borrowing costs to the lowest point for 2014.

 

The average rate for a 30-year fixed mortgage was 4.1 percent, down from 4.12 percent, Freddie Mac said in a statement on Thursday. The average 15-year rate slipped to 3.23 percent from 3.24 percent, according to the McLean, Virginia-based mortgage-finance company.

 

The 30-year rate was last this low at the end of October. It has declined from a two-year high of 4.58 percent last August, helping support home demand. Previously owned houses sold at an annualized rate of 5.15 million in July, up 2.4 percent from the previous month and the most since September, the National Association of Realtors said on Thursday.

 

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"The longer rates are down at these levels, the more activity we’re going to get," Mark Vitner, senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina, said in an interview before the data were released. "They're helping in some way, but that activity may be less than hoped for."

 

Last month's sales pace was down 4.3 percent from July 2013, figures from the Realtors group show.

 

More from Bloomberg

 

Tags: loans
 
29Comments
Aug 23, 2014 5:01AM
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After reading some of the negative comments herewith, I thought I'd share that I just rec'd a 3.8% interest rate that will be assumable when I sell.  I have credit scores between 600-700 and I put 3.5% down.  I have only worked 1 1/2 years out of the last 8 due to living outside the US from 2006-11; hence, I had no credit to speak of initially.  You can build yours up, if necessary.  These rates are at an historic low, will not be going lower [IMHO] and my mortgage payment - with taxes, ins, interest, and HOA will be lower than my rents these past three years [in Houston and Dallas areas].  I can assure you that now is the time to purchase, real estate is one of the best investments one can make [you must live somewhere] and interest rates will not be going down.  The benefits far outweigh the risks in today's market.
Aug 22, 2014 12:37AM
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Hitting the lows during this critical period is a great benefit for the real estate business. I'm into real estate in both US and Canada, and it is seen that both economy is having a same phase. Canada is also enjoying the lowest rates and it is believed that this is going to be a favorable move for the business. Many also believe that this year the business is going to produce a lot of profit for all.
I've also had discussion with my mortgage agent, Safebridge Financial Group, ON, and they feel that this low is going to stay for a while. Seems like most of the analyst also feels the same, and are expecting this low rates till 2016.

Aug 21, 2014 2:19PM
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Anyone who has a good credit rating and a job

can get a loan today..


The lenders are in the market to loan..

And the homes are available..


America "Is On The Rise Again"

 


Aug 21, 2014 12:25PM
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Just try getting one of the low rate 30 year mortgages.  Unless your credit is gold-plated and you put down 20% or more, you will never get one of the low rate mortgages.  Of course they may try to steer you into a much higher rate mortgage with some excuse about your credit, but you never hear about this bait and switch.  Times have changed.
Aug 21, 2014 11:09AM
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Hurry!!  Hurry!! Step right up and get your new mortgage while they last!!!   Don't worry about a job or ability to pay it back, at these rates who cares!!.....Total sarcasm.......Had to propagate good news to off set all the bad economy stuff.....another rock, another MSN writer....oppps...this ones from Bloomberg another highly trusted source of "sound" information........
Aug 21, 2014 10:26AM
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Why is it banks are willing to give loans for people with bad credit, or put down less then 20%, People who let their homes go into foreclosure a few years ago, but they don't work with people with an upside down mortgage on their current home ?
Aug 21, 2014 10:08AM
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I am tired of paying my hard earned money on a rip off mortgage.  I say we do something about this.  All Americans need to rebel against our banks and never pay another mortgage payment again.  When they try to foreclose, we should all get our shotguns and nuclear weapons and tell them to get off our properties or eat lead and plutonium.  Then if the police come to force us out of our foreclosed homes, we should use nuclear weapons to hold them back.  We can zap them with 1.21 Jigowatts of nuclear fusion.  That will fix their wagons.  Then we can all live free and never have to pay our mortgages again.
Aug 21, 2014 9:34AM
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Once those rates start going up watch the stock market as it goes down...
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