This week, long-term mortgage rates dropped to their lowest level in nine months, which appears to have spurred home buying activity.

Freddie Mac reported 4.45 percent with an average 0.5 point as the average for a 30-year mortgage on Thursday, down six basis points from last week.

“Mortgage rates fell to the lowest level in nine months, and in response, mortgage applications jumped more than 20 percent,” Freddie Mac chief economist Sam Khater said. “Lower mortgage rates combined with continued income growth and lower energy prices are all positive indicators for consumers that should lead to a firming of home sales.”

The UrbanTurf Mortgage Rate Disclaimer: The rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate.

SOURCE: UrbanTurf