Record Low Mortgage Rates Due to Home Construction Increase

By Sari R. Updated on 10/18/2012

Potential homeowners heading into the market are still pleased to be enjoying historically low mortgage rates.  According to Freddie Mac’s Primary Mortgage Market Survey, the 30 year fixed-rate mortgage is currently 3.37% as of today, which is down from 4.11% at this time last year.  The 15 year fixed-rate mortgage is currently 2.66%, as compared to 3.38% at this time last year.

Analysts at Freddie Mac claim that mortgage rates have been unchanged the week of October 18^th due to the increase in home construction.  Single-family home construction rose to an annualized rate of 11% this August.  This is the strongest annualized rate since August 2008.  Homebuilder confidence rose for the sixth consecutive quarter. 

Homebuilders are enjoying that their services are more in demand.  As of August 2012. the annual rate of homes is 872,000.  The Federal Reserve is still committed to low interest rates and recently decided to buy mortgage-backed securities at $40 billion per month.

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