Buying Power Boost

The average 30-year fixed rate for a mortgage dropped to 4.06 percent this week, down 22 basis points from last week and 34 basis points annually, according to Freddie Mac.

The government-backed lender's chief economist Sam Khater says, "The Federal Reserve's concern about the prospects for slowing economic growth caused investor jitters to drive down mortgage rates by the largest amount in over 10 years," adding, "Despite negative outlooks by some, the economy continues to churn out jobs, which is great for housing demand." CNBC reports that Khater also anticipates growth in purchase demand.

Closed home sales jumped dramatically in February, compared with January but were still lower annually. Pending home sales in February, which measure signed contracts, were slightly lower monthly and nearly 5 percent lower annually. Mortgage rates in February were around 4.5 percent, below the 5 percent range last November, but not as low as today.

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