(STL.NEWS) In another positive for both potential homebuyers, and sellers, Freddie Mac has reported mortgage rates showing a continuing decline with the 30 year mortgage approaching the 4 percent mark.
The markets have been expecting the decline, especially in light of the Federal Reserve statement last week of possible bond buying, which, drives bond prices up and yields down. The current 10 year treasury yield, loosely correlated to mortgage rates, is at the time of publishing, 2.384% which is also down significantly from where yields were at before the fed announcement.
Helping affordability, coming in to spring buying times with higher activity in the housing market, this news provides another boost in affordability for those looking to purchase a home.
Other components will also affect what happens this spring in the housing market. Prices have been strong and the continual decrease in interest rates may bolster sellers prices even more.
Home buyers continue to report low supply of available houses on the market. Now that we are in the early spring, we will be paying close attention to both active listings and days on market statistics to see how strong the housing markets actually are.