Mortgage interest rates dropped this past week. They remain under 4% for borrowers with the best credit scores.
There’s not much demand for mortgages so with reduced demand, suppliers of such loans must drop their prices (interest rates and fees) to stimulate more buyers.
Report: The super-low rates are helping the housing market recover, albeit slowly. Home sales have been rising and the four-week average of home purchase applications was up in January and February, according to the Mortgage Bankers Association.
In recent months, other signs have emerged that suggest the troubled housing market could start to turn around this year.
Builders are more optimistic after seeing more people express interest in buying a home. Construction has picked up and builders are requesting more permits to build single-family homes. And the supply of homes on the market is falling, which could send home prices higher.