The average U.S. rate on the 30-year fixed mortgage dropped back below 4 percent this week, staying near historic lows.
According to mortgage buyer Freddie Mac, the rate on the 30-year loan slipped to 3.99 percent from 4.08 percent last week.
Last month, the rate hit 3.87 percent, the lowest since long-term mortgages began in the 1950s.
The average rate on the 15-year fixed mortgage also fell, to 3.23 percent.
That’s a decrease from 3.30 percent last week and above the record low of 3.13 percent reached earlier this month.
The low rates have made home purchasing and refinancing more affordable at a time when the housing market is flashing small signs of improvement.
Still, most economists state it will take years for the market to fully recover from the housing bust.
January and February made up the best winter for resales in five years, when the housing crisis began.
Builders are more confident about the market.
In February, they requested the majority of permits to build single-family homes and apartments since October 2008.
An improved job market may be helping home sales as well.
Employers have added an average 245,000 net jobs per month from December through February.
That has helped decrease the unemployment rate to 8.3 percent, which is the lowest level in nearly three years.
Rates increased earlier this month after positive economic news pushed up yields on U.S. Treasury bonds.
Mortgage rates track the yield on the 10-year Treasury note.
Source: builderonline.com