Why are mortgage rates so low? Because demand is so weak for mortgages. With economic prospects uncertain, fewer Americans than is normal are in the market for a mortgage, so it is in lender’s interest to make their mortgages as tempting as possible.
Low mortgage rates are not boosting home buying in terms of a drastic uptick in home prices and buying, but they’ve stopped the housing market falling deeper, home prices declining more steeply and demand falling off the cliff.
The USA Today reports: Cheap mortgage rates have made home-buying and refinancing more affordable than ever for those who can qualify.
Mortgage buyer Freddie Mac said Thursday that the average rate on 30-year loans ticked down to 3.83%. That’s the lowest since long-term mortgages began in the 1950s. And it’s below the previous record rate of 3.84% reached last week.