Falling mortgage rates make homeownership affordable

September 27th, 2012 10:27am
Houston area buyers should consider locking in a mortgage rates now, just in case they start to pick up in the near future.Although average Houston home prices increased significantly in August, falling mortgage rates could make the prospect of buying a home in the city much more affordable.

Last month, the average price for a single-family home spiked 4 percent from a year earlier to $224,464, according to a report from the Houston Association of Realtors. Experts claim this is the result of a healthy local economy and a dwindling foreclosure rate well below the national average.

Average fixed mortgage rates have hovered below 4 percent for all but one week so far this year. Most recently, during the week ending September 27, the average rate for a 30-year FRM dipped to 3.4 percent, according to a report from Freddie Mac. Meanwhile, the 15-year FRMs averaged 2.73 percent. These were records low for both rates.

"Fixed mortgage rates continued to decline this week, largely due to the Federal Reserve's purchases of mortgage securities, and should support an already improving housing market," said Freddie Mac vice president and chief economist Frank Nothaft.

Houston area buyers should consider locking in a mortgage rates now, just in case they start to pick up in the near future.

  
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