Mortgage Rates Decline After Three Consecutive Weeks of Increases
Average mortgage rates declined this week, after three consecutive weeks of increases. 30 year conforming mortgage rates are currently averaging 3.90 percent, down from last week's average 30 year rate of 3.94 percent. Rates moved higher the prior three weeks but the increases have been small. 30 year rates were averaging 3.85 percent in early May, only 9 basis points lower from the current level.
Despite near record low mortgage rates, the housing market hasn't fully recovered. Existing-home sales slowed last month in all major regions of the country, except the Midwest. The National Association of Realtors reported existing home sales increased 3.3 percent to seasonally adjusted annual rate of 5.04 million in April.
The sole reason for the slowdown is the low number of available homes for sale. Buyers are coming back into the market, because of a stronger economy and a lower unemployment rate, but the low number of homes for sale is forcing prices higher.
Lawrence Yun, NAR’s chief economist, said:
Housing inventory declined from last year and supply in many markets is very tight, which in turn is leading to bidding wars, faster price growth and properties selling at a quicker pace," says Yun. "To put it in perspective, roughly 40 percent of properties sold last month went at or above asking price, the highest since NAR began tracking this monthly data in December 2012.
Home prices are moving higher and mortgage rates will eventually also move higher, making homes less affordable. If you're thinking about buying a home, now is probably one of the best times to buy for several years to come. If you already own a home and are thinking about refinancing your mortgage, you should do so sooner than later, if refinancing makes financial sense for you.
Average mortgage rates for May 26, 2015 are listed below. These mortgage rates are average rates, there are many lenders quoting rates on purchase loans and refinance loans below the average. Be sure to shop around to find the best rate available. Just like you would shop around for the lowest price on any major purchases.
You can search for and compare mortgage refinance rates from many lenders in your state by search our rate lists: Mortgage Rates Today
RatesORama.com Average Mortgage Rates