Don’t expect much movement in rates over the short term, say 46% of experts polled this week by Bankrate.com. While 39% expect an increase, 15% predict further declines.
The average rate on the 30-year fixed mortgage home loan dropped a smidgen down to 3.99 percent from 4 percent the previous week. It dropped to a record low of 3.94 nine weeks ago, according to the National Bureau of Economic Research.
Mortgage rates tend to follow the yield on 10-year Treasury note. The yield rose this week after investors, encouraged by central banks’ joint effort to ease lending standards, shifted their money into stocks.
But the super-low rates aren’t providing a lift to the struggling housing market. Low mortgage rates haven’t translated into more home sales. Sales of previously occupied homes are just slightly ahead of last year’s sad sales figures – the worst in 13 years. New-home sales may be headed to their worst year in 50 years.
Some lenders say they are seeing an increase in applications through the Obama administration’s refinancing program, which was changed this October to allow up to 1 million more homeowners lower their monthly mortgage payments. According to the Mortgage Bankers Association, government-assisted loans account for only a small portion of refinancing applications.
