Monday, September 24, 2012

Record lows this week: mortgage rates Los Angeles


Our Los Angeles broker posts mortgage rate news every week. This week, mortgage rates hit a new record low when 30-year fixed mortgage rate averaged 3.49%, down from 3.55% the week prior. The average 15 year fixed mortgage rate fell to a record of 2.77%, from 2.85 percent.
On Thursday of last week, mortgage rates plummeted to the lowest rate on record, responding to action from the Federal Reserve intended to stimulate the housing market. The Federal Reserve revealed last week its plan to purchase $40 billion per month in mortgage-backed securities. The hope is that this will stimulate job creation and lower the cost of borrowing. 
The real estate market is expected to be recovering after more than three years of declines. Home sales rose to a two-year high in August, the National Association of Realtors reported on Wednesday. Single-family housing starts advanced at the best rate since April 2010, the Commerce Department said.

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