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U.S. mortgage rates declined to record lows as the Federal Reserve pushed down borrowing costs by resuming purchases of mortgage-backed securities.

The average rate for a 30-year fixed loan fell to 3.4% in the week ended today from 3.49%, McLean, Virginia-based Freddie Mac said in a statement. It was the lowest in data going back to 1971. The average 15-year rate dropped to 2.73%, also a record, from 2.77%.

The housing market has been showing signs of recovering as low borrowing costs draw in buyers who are competing for a limited supply of homes. Mortgage rates declined after the Fed's Sept. 13 announcement that it would buy $40 billion of securities per month.

"We've already seen low mortgage rates even before the Fed action," said Anika Khan, a senior economist with Wells Fargo & Co. in Charlotte, North Carolina. "We'll continue to see mortgage rates come down. That means affordability will continue to be high."

Purchases of new U.S. homes fell 0.3% to a 373,000 annual pace in August, following a revised 374,000 rate in July that was the strongest since April 2010, figures from the Commerce Department showed yesterday. Home prices in 20 U.S. cities climbed more than forecast in July from a year earlier, according to an S&P/Case-Shiller report.

While borrowing costs are falling, they could be even lower. Since the Fed's announcement, the rates offered for new 30-year loans have fallen by 0.19%age point, compared with a drop of about 0.6%age point for yields on the bonds into which the loans get packaged, according to data compiled by Bloomberg and Bankrate.com.

The gap between the two, which typically signals increasing lender revenue when it widens, reached a record of more than 1.7 percentage point yesterday.

Copyright © 2012, Los Angeles Times

For more information, please contact Ashlie DuCros at 714-743-9778, or go to www.AshlieDuCros.com

 

September 2012 Home Stats in Orange County

by Ashlie DuCros

Check out these numbers of homes for sale vs. in escrow...  Thinking of selling? Now is the time to put your home on the market! For more information, go to www.AshlieDuCros.com

 

 

Orange County Home Stats
City For Sale In Escrow
Anaheim 194 322
Anaheim Hills 83 54
Brea 37 53
Fullerton 150 121
Irvine 379 204
Laguna Beach 210 26
Newport Coast 98 18
Orange 156 139
Tustin 78 77
Yorba Linda 169 91

 

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Ashlie DuCros & Associates
Coldwell Banker Previews Global Luxury
21580 Yorba Linda Blvd.
Yorba Linda CA 92887
714-743-9778
Fax: 714-849-5489