According to Freddie Mac's most recent weekly mortgage rate report, the average interest charged to borrowers for a 30-year, fixed rate loan fell to 4.21%. This was down 4.29% from the week earlier, and marks a new low for 2014 mortgage rates. As shown in the graph below, the 15-year fixed rate mortgage also dipped from 3.38% to 3.32%.
While the mortgage rate drops are nice for buyers in the market, they demonstrate weak economic recovery for our country which is reflective upon U.S. Treasury bonds. In combination with strict lending standards, the positive impact of these low rates on the recovery is rather limited. Those with unsatisfactory credit who wish to buy still cannot do so without obtaining the proper financing.
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