Americans continue to take advantage of the housing market, packing
up and moving into homes that are worth a percentage of their values several years ago.
Freddie Mac recently released the results of its Primary Mortgage Market Survey, which showed average mortgage rates are slightly higher than they were in 2011, but still at a record low, making it evident that a recovery in the market is possible with time.
A year ago at the same time, the 30-year fixed rate mortgage averaged 5.05 percent. Current numbers show the FRM averaging 3.87 percent for the week ending February 9.
"A strong January employment report added upward pressure to most mortgage rates this week," said Frank Nothaft, vice president and chief economist of Freddie Mac. "The economy gained 243,000 jobs last month, the largest monthly gain since April 2011, and the unemployment rate fell to 8.3 percent, which was the lowest since February 2009. Although historical revisions also added 266,000 even more workers, they caused the labor participation rate to fall to 63.7 percent, representing the smallest share since May 1983, which offset some of the rise in mortgage rates."
Zillow recently projected that some of the nation's hardest-hit markets would reach rock bottom this year after home values declined in the fourth quarter.