Remember how some thought that rates would skyrocket after QE2 ended in June? From the AP:
The average rate on the 30-year fixed loan ticked up to 4.52 percent from 4.51 percent a week ago, Freddie Mac said Thursday. It reached its yearly low of 4.49 percent a month ago.
The average rate on the 15-year fixed loan, popular for refinancing, nudged up to 3.66 percent from 3.65 percent, its low point for the year.
Mortgage rates typically track the yield on the 10-year Treasury note. Yields fall when prices rise. In the past week, yields have been stable even though Congress and the Obama administration are less than two weeks away from a possible default on the government’s debt.
Negotiations to raise the government’s $14.3 trillion borrowing limit have yet to produce a deal that can pass both chambers of Congress, although a bipartisan Senate plan has drawn support from President Obama.
Low mortgage rates and depressed home prices have done little to revive the struggling housing market. Many people simply can’t take advantage of the historically low rates because of tighter lending standards and bigger required down payments.
Other potential homebuyers are holding off, concerned that housing prices will continue to fall.
Few economists expect the housing market to rebound before 2013.