Freddie Mac said the average rate for 30-year fixed mortgage dropped 0.21% to an average 5.38% for the week ending June 18. Mortgage rates have been on the rise in the last few weeks, so this decrease is good news for the housing industry.  Mortgage applications follow rates, and drop as rates increase.  Analysts are looking at the housing industry for signs of economic recovery, so this number is watched very closely. 

Mortgage rates should stay in the same range until the economy recovers.  Borrowing will not be an impediment to home buyers, according to most housing experts. The Federal Reserve plans to buy up to $1.25 trillion of mortgage-backed securities this year in order to keep mortgage rates low.  These rates are low, and they’re going to stay low, according to the experts.

Now that’s some good news we can all use!