Loan rates had been creeping up these last few months, but for the second consecutive week they again remained under 5 percent. The average interest on a 30-year fixed loan according to Freddie Mac came in at 4.95 percent (a .02 drop from the previous week). On a 15-year fixed-rate loan, the interest rate averaged 4.32 percent.
Along with interest rates remaining low, there is optimism that the housing market is in a slow and steady recovery. According to Kiplinger’s writer Richard DeKaser, a springtime thaw in the housing market is coming,
A springtime rebound ought to be just around the corner, if I’m right about the winter housing downturn being due to special factors. It’s too soon to say for sure, but tentative signs of an uptick are already emerging. According to the Mortgage Bankers Association, for example, home purchase applications increased in late February and early March, pushing them above the pre-blizzard levels of early February.
Good news all around! On a personal level, the phone has started ringing again and one of my favorite lenders agrees that business seems to be on the upswing.
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