Mortgage rate below 4 percent

Freddie Mac recently released the results of its Primary Mortgage Market Survey, which found fixed mortgage rates are remaining near or below 4 percent for the past three weeks. The 30-year fixed-rate mortgage averaged 4 percent, while the 15-year fixed-rate mortgage averaged 3.31 percent for the week ending in November 17.

Vice president and chief economist at Freddie Mac Frank Nothaft said retail sales and consumer confidence grew in the past few weeks, pushing home builder confidence up as well. These positive economic reports are helping the mortgage rates to stay at low levels.

The National Association of Home Builders said that the low interest rates and stabilizing home prices put housing affordability at record levels for the third quarter of 2011. The current Housing Opportunity Index indicated 72.9 percent of all new and existing homes sold in the third quarter were affordable to families earning the national median income of $64,200. The HOI increased from 72.6 percent in the second quarter and has reported above 70 percent for 11 consecutive quarters.

"With interest rates at historically low levels and markets across the country beginning to improve, homeownership is within reach of more households than it has been for nearly two decades," said Bob Nielsen, chairman of the National Association of Home Builder.

More News