Fixed-rate mortgages continued to trend downward for the second consecutive week and are not at their lowest levels since June.
The average rate on a 30-year, fixed-rate mortgage dropped 0.03 percentage point from the previous, according to the latest survey by mortgage buyer Freddie Mac. Previously at 4.13 percent, the 30-year average is now trending at 4.1 percent. At this time last year the average was 3.39 percent. It's now at its lowest level since it averaged 3.93 percent in June.
Concerns about a softening housing market and the economy's recovery, particularly the Federal Reserve's decision to continue its bond-buying stimulus program, have been cited as the main reasons behind the decline in loan rates. As part of the massive stimulus program, the Fed is currently buying $85 million in bonds each month, in an effort to keep long-term interest rates affordable.
Looking ahead, rates are expected to remain relatively the same in the short-term. In the latest Mortgage Rate Trend Index by Bankrate.com, 70 percent of analysts polled believe rates will remain unchanged over the next week. Another 20 percent believe rates will continue their downward trend.
**Information take from Realtor.com
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