Mortgage rates edge down in U.S. housing market

    Source: Xinhua| 2019-05-10 11:32:38|Editor: Lu Hui
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    WASHINGTON, May 9 (Xinhua) -- Mortgage rates dropped in the United States last week, still sitting at a lower level compared to one year ago, the U.S. Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, said Thursday.

    For the week ending Thursday, 30-year fixed-rate mortgage (FRM) in the United States dropped to 4.1 percent from previous week's 4.14 percent. For the same period one year ago, the 30-year FRM averaged 4.55 percent.

    Besides, Freddie Mac noted that 15-year FRM this week dropped to 3.57 percent, lower than the previous week's reading of 3.6 percent.

    The latest rate of 15-year FRM was also lower over the year and the figure was 4.01 percent for the same period a year ago.

    "A combination of low mortgage rates, a strong job market and modest wage growth should spur homebuyer interest and also serve as an incentive for homeowners looking to refinance this spring," said Sam Khater, chief economist of Freddie Mac.

    With 30-year FRM and other mortgage rates edging down for the second consecutive week, mortgage applications in the United States rebounded after weeks of decline, according to a report released by Mortgage Bankers Association on Wednesday.

    Freddie Mac is a corporation founded by U.S. Congress with an aim to promote the stability and affordability in the U.S. housing market by purchasing mortgages from banks and other loan makers. The corporation has been conducting weekly surveys on U.S. mortgage rate since April 1971.

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