US mortgage rates dipped this week, cutting borrowing costs as the country’s residential property market heads into its second year of recovery, reported Bloomberg.Average 30-year fixed loans fell to 3.54 percent this week ended April 4 from 3.57 percent previously, while its 15-year counterpart slipped to 2.74 percent from 2.76 percent, according to mortgage giant Freddie Mac. Mortgage applications dropped four percent in the week ended 29 March after recording a 7.7 percent gain in the previous week, said the Mortgage Bankers Association (MBA). Its home loan index declined 5.6 percent, while its gauge of purchases rose by 1.4 percent. Meanwhile, US home prices climbed 10.2 percent in February compared to the same period a year ago — its highest increase since March 2006. It was also the 12th straight month of year-on-year gains, fuelled by tight inventory of homes and low borrowing costs, noted analytics firm CoreLogic.
“The house-price rebound shows no sign of spluttering out. Nor should it. After all, supply conditions are still very tight,” said Paul Diggle, property economist at London-based Capital Economics.Notably, the National Association of Realtors said that supply of homes for sale climbed in February after falling to a 12-year low in January.