Low mortgage rates boost home buying

With mortgage rates hovering around record lows, home buying activity has seen an uptick recently, according to a report.

According to HSH, the average rate for a 30-year fixed-rate mortgage currently sits at 3.88 percent, just above record lows.

“Record and near-record low mortgage rates are providing important support for the housing market,” said Keith Gumbinger, vice president of HSH.com. “Both existing and new home sales are starting to move upward. However, buying a home doesn’t happen overnight, and successful transactions begin many months before they came to fruition.”

Freddie Mac’s latest weekly Primary Mortgage Market Survey shows the average rate for a 30-year-fixed rate mortgage has dropped in each of the past six weeks, from 3.9 percent during the week of April 19 to 3.78 in the week of May 24. The near record low mortgage rates should boost home buying across all sectors.

With mortgage rates near record lows, now is a good time for investors to get in the market and buy a home for rental purposes, which would create business for property management companies across the country.