MERCED, Calif., Feb. 13, 2014 /PRNewswire-iReach/ -- Over the last few years, the housing market has seen its fair share of ups and downs. Consumers have become wiser in selecting the time in which they purchase their home, ensuring that the mortgage rate they secure is beneficial to them. After an increase in these rates over the past year, fixed mortgage rates are again decreasing, and buyers have taken notice.
As fixed mortgage rates continue to move toward record lows, there is an expectation that the housing market will begin to pick up again. Recently, home sales had decreased steadily due to the speculation that the Federal Reserve was planning on reducing its bond packages, something that caused the mortgage rate to spike significantly. That rate is now down by a full percentage point, and may move past the previous record low in a relatively short period of time.
"It seems that home buyers have become wary of the rising mortgage rates," said a representative with ABC United Cash Loans. "Consumers are paying closer attention to these details, and it has absolutely impacted the rate of home sales. As the fixed mortgage rate continues to decrease, we expect these numbers to pick back up significantly."
The average rate for a 30-year loan is down to 4.41 percent, while the average for a 15-year loan is now down to 3.56 percent.
These numbersrepresent a decrease in a full percentage point over the last year, a year that saw a significant struggle relating to home sales. Despite this, 2013 was still representative of the best year for real estate since the financial crisis.
"It really should not be surprising that home buyers are hesitant," said the representative from ABC United Cash Loans. "Consumers are aware of the pratfalls of buying a home with a mortgage rate that does not suit their best interests. It is intelligent on their part to wait until the rate comes down, and now that it has, home sales are very likely to increase again."
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SOURCE ABC United Cash Loans