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Mortgage

U.S. Mortgage Rates drop Slightly Amid Uncertainty

U.S. mortgage rates modestly fell this week, according to Freddie Mac.

The 30-year fixed mortgage averaged 4.07 percent for the week ending May 16, down from 4.10 percent the previous week. A year ago, mortgage rates stood at 4.61 percent.

Low mortgage rates help propel U.S. home sales and the refinance market.

“Modestly weaker consumer spending and manufacturing data, along with continued jitters around trade policy, caused interest rates to decline throughout the yield curve,” said Sam Khater, Freddie Mac’s chief economist.

“While signals from the financial markets are flashing caution signs, the real economy remains on solid ground with steady job growth and five-decade low unemployment rates, which will drive up home sales this summer.”

Favorable rates had been helping Dayton-area home sales. However, local home sales fell 8 percent in March, according to Dayton Realtors.

The historic low for 30-year rates was 3.31 percent in November 2012.

Source:  Bizjournals

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READ MORE:  Boom in Refinancing Boosts Mortgage Lending
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