Although it was a small decrease, a drop in mortgage rates in April was partly responsible for a rush of buyers into the housing market. According to recent data from CoreLogic, April home prices, including distressed sales, jumped by 6.9 percent annually. This comes as the month saw borrowing costs return to rates not since late last year.
Currently, conforming no-point 30-year fixed mortgage rates are averaging 4 percent while 15-year rates are near 3.125 percent. Historically low mortgage rates have helped drive U.S. home sales, as well as the refinance market.
"Mortgage rates in April dipped back to their lowest level since November of last year, spurring home-buying activity," said CoreLogic's Chief Economist Frank Nothaft. "In some metro areas, there has been a bidding frenzy as multiple contracts are placed on a single home."
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.