A large recovery in the housing market that took place several weeks past was later credited to buyers securing the homebuyer tax credit before the April 30th deadline. A 13-year low soon followed the “recovery.” Freddie Mac chief economist Frank Nothaft and other analysts are of the belief that this is a temporary decline, acknowledging that growth for the first three months of the year fell short of expectations. However the housing market has shown signs of being on the right path to recovery; it will be a slow one with inflation being relatively stable. Bob Lipply who sells Trinity homes says that the trend of low prices and financing choices on homes will maintain, keeping the environment advantageous for new buyers.
Recent figures from Freddie Mac show that mortgage rates are holding at record lows in the midst of an unsteady U.S. bond market, with 30-year fixed mortgages averaging 4.79 percent for the week ending June 3, up 0.01 percentage points from the prior week but half a point lower than last year. This is near the all-time low of 4.71 points reached last December, corroborating that 30-year rates have remained largely unchanged. Likewise, 15-year fixed-rate mortgages have shown new record lows reaching 4.20 percent, which is considerably lower than the 4.79 percent average of the previous year. Freddie Mac has been tracking 15-year rates since 1991 and 30-year rates since 1971.