Thirty year home loan mortgage rates dropped this week to 5.38 percent from a 7 month high of 5.59 percent.
Despite continued indications that the housing market is starting to stabilize there has been some concern that as the interest rates grew there could be a slow-down in the stabilization due in part that borrowers might not be able to get as much money from lenders as they want as a direct consequence to higher interest rates. At that point borrowers may decide that they may want to wait a while longer before deciding to buy.
With the rise in interest rates for close to the last month buyer demand has showed signs of slowing.
Mortgage Bankers Association reported that there has been a 3.5 percent drop in mortgage applications just in the last week as refinancing applications dropped just under 25 percent in the week prior.
Fifteen year fixed mortgage rates dropped to 4.89 percent from 5.06 percent last week, while rates on five-year adjustable mortgage rates hovered around 4.97 percent which is below were they were last week at 5.17 percent.
With the 30 year fixed mortgage rates now at a 7 month low, there should be an increase in mortgage applications again which should help re-jump start the housing market again and get it back on its track to recovery.