Is the 30-Year-Fixed Headed to 3%?
Despite a spring surge in home buying this year, especially in new construction, these lower rates should make the surge bigger and continue it throughout the summer, but that does not appear to be the case. The NATIONAL ASSOCIATION OF REALTORS® reported a surprise drop in home sales in June, due to low inventory on the low end of the market, which is not as dependent on mortgage rates.
Mortgage rates are a full percentage point below where they were one year ago, and that recently sparked yet another spike in mortgage refinance applications, according to the Mortgage Bankers Association. It did not, however, do the same for applications to purchase a home (HOUSELOGIC 7/27/12).