Mortgage Rates Creep Down Toward 4%
NEW YORK (CNNMoney) (Feb, 6 2014) — Maybe the days of rock-bottom mortgage interest rates aren’t numbered, after all. Once again, rates are creeping down towards 4%.
Rates dropped 0.09 percentage point this week to 4.23% for a 30-year, fixed -rate home loan, according to the latest weekly report from Freddie Mac.
Mortgage rates started the year at 4.53%, and have sunk each week in 2014, falling a total of 0.3 percentage point.
Borrowers with a 4.23% mortgage would pay $982 a month on a $200,000 balance, compared with $1,017 on a 4.53% loan.
Frank Nothaft, Freddie Mac’s chief economist, attributed the move to cooling home sales.
“Mortgage rates fell further this week following the release of weaker housing data,” he said. “The pending home sales index fell 8.7% in December to its lowest level since October 2011.”
The drop in mortgage bond purchases by the Federal Reserve, the so-called taper, that started last month, was expected to push rates gradually higher.