Cord Moving Reports: Mortgage Rates Down Slightly This Week
Mortgage rates were down slightly this week which impacts the Moving and Storage as home buyers remain skittish about taking the plunge. Freddie Mac’s (OTC: FMCC) weekly rate report says a 30-year fixed-rate mortgage averaged 4.12 percent in the week ending July 31, down from 4.13 percent last week. A year ago, 30-year rates averaged almost 4.4 percent. Although a 15-year fix fell to 3.23 percent this week, from 3.26 percent last week. A one-year adjustable-rate mortgage averaged 2.38 percent this week, down from 2.39 percent – these low rates remain a bright spot in a housing market that is showing signs of stress with slowing relocations nationwide.
According to the Washington Business Journal, contracts signed to buy an existing home in June were down 7.3 percent from a year ago. T
he National Association of Realtors blames the housing slowdown on several factors, including affordability, tight lending standards and an insufficient amount of houses and condos for sale. First-time home buyers appear especially skittish about buying.
First-time buyers now account for just 28 percent of all sales. Historically, the share of first-time buyers has been 40 percent again as the moving season is starting to wind down these are not good indicators what the winter cycle will bring.