On December 27, lending giant Freddie Mac released its last Primary Mortgage Market survey of the year, revealing a continuation of near record-low numbers. Experts say that these low rates will more than likely help fuel the fragile housing recovery that has already been spurred by things such as higher property values, an increased number of building permits and an improvement in builder and consumer confidence.
According to Freddie Mac's website, 30-year fixed-rate mortgages finished off the year at 3.35 percent, down from 3.91 percent in the beginning of 2012. This number hit its record rate on November 21 at 3.31 percent, the lowest since the survey's inception in 1971.
The lending giant also reports on 15-year fixed-rate mortgages in its weekly survey. The most recent data shows that this number is at 2.65 percent, unchanged from last week and down from 3.23 percent on January 5, the first reading of 2012.
Frank Nothaft, Freddie Mac's vice president and chief economist, said in a statement that these numbers indicate that borrowers could see interest payment savings of nearly $98,600 for 30-year fixed-rate mortgages and $138,400 for 15-year fixed-rate mortgages. Experts say that this year's improvement in mortgage rates is largely due to support from the Federal Reserve and the way the economy has been struggling following the Great Recession.
With the housing market experiencing positive growth and mortgage rates remaining at record-lows, lenders would be well-advised to invest in loan management software to ensure that the trend continues. This kind of software can help borrowers remain financially responsible and stay on top of their monthly payments.