Home affordability expected to improve as mortgage rates get lower: Freddie Mac

WASHINGTON, March 21 (Xinhua) -- As mortgage rates kept dropping, home affordability concerns could be eased in the United States, the U.S. Federal Home Loan mortgage Corporation, commonly known as Freddie Mac, said on Thursday.

For the week ending March 21, 30-year fixed-rate mortgage (FRM) in the United States dropped to 4.28 percent, while the previous week's figure was 4.31 percent.

For the same period a year ago, the 30-year FRM averaged 4.45 percent, according to Freddie Mac.

"mortgage rates have dipped quite dramatically since the start of the year and house prices continue to moderate, which should help on the homebuyer affordability front," said Sam Khater, chief economist of Freddie Mac.

Besides, Freddie Mac noted that 15-year FRM this week edged down to 3.71 percent, which was also lower than previous week's reading of 3.76 percent. For the same period a year ago, the figure was 3.91 percent.

"The combination of improving affordability and more inventory than the last few spring selling seasons should lead to improved home sales demand," Khater added.

Freddie Mac is a corporation founded by U.S. Congress, aiming at promoting the stability and affordability in the U.S. housing market by purchasing mortgages from banks and other loan makers. The corporation has been conducting weekly surveys on U.S. mortgage rate since April 1971.