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IRVINE, CA--(Marketwired - Mar 1, 2016) - Mortgage rates continued dropping recently, hitting a year-long low, according to Freddie Mac's weekly survey and the Personal Lending Group has announced that now is a great time to purchase a home.
The national average rate for 30-year fixed rate mortgages was 3.62 percent for the week ending Feb. 26, down from 3.65 percent a week prior and 3.8 percent a year ago, according to Freddie Mac, the Congressionally chartered agency that provides mortgage capital to lenders.
It was the seventh time in the past eight weeks that mortgage rates have fallen, making now a great time to realize the American dream of home ownership, according to officials with Personal Lending Group, a leading facilitator of online mortgage loans.
With its easy-to-use website, Personal Lending Group links home buyers with lenders, helping customers find the lowest rates possible with the most favorable terms. Rates are determined by debt-to-income ratios, down payment, credit score and employment history.
Earlier in the week, the National Association of Realtors announced that existing home sales were up 4 percent in January over December, and up 11 percent from last year.
"Since the beginning of 2016, 30-year rates have fallen almost 40 basis points, helping housing markets sustain their momentum into this year," said Sean Becketti, chief economist at Freddie Mac.
Many people thought mortgage rates would be rising this year following the Fed's decision in late December to raise its funds rate in an effort to ward off inflation, but the opposite is occurring as investors flood the bond market. That's causing Treasury rates to fall, and mortgage rates typically follow.
Meanwhile, home prices are rising and are widely expected to continue on that course throughout 2016. That's largely because the supply of homes on the market is tight, with inventory at its lowest level since 2005. The supply was expected to increase during the slow winter season but that hasn't happened.
So with falling mortgage rates and rising home prices, people who are planning to buy homes this year are encouraged to act sooner than later.
For more information, contact Personal Lending Group's website at http://personallendinggroup.com
Personal Lending Group