Mortgage rates have declined a little since spring has gotten off to a slow start. Freddie Mac said the rate for the US’s 30 year loan has eased 0.04% and the average for the 15 year mortgage has gone down 0.01%.
National home prices are expected to go up this year by a few digits, which is better than the double-digit increase as the US recovers from the recession. The Federal Reserve will reduce its multi-million dollar bond purchases per month to maintain low long-term interest rates.
The Federal Reserve has been reducing its monthly bond purchases since the end of last year to keep rates low. Reducing purchases is a good sign the Feds believe that the economy is healing.