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Mortgage rates remain at a two-year low, giving borrowers another incentive

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A home in Maywood, California.

Home loan rates remained largely stable and even declined slightly as investors continued to hold bonds via a slowing economy and geopolitics.

The 30-year fixed-rate mortgage averaged 3.82% during the week ended June 1

3, during the week, Freddie Mac said Thursday. Almost in the middle of the year, the popular product only grew six times a week. It is now at a two-year low.

The 15-year fixed rate mortgage averaged 3.26% from 3.28%. The 5-year variable rate mortgage and government bond index averaged 3.51%, down 1 basis point.

Read: Real estate market sentiment reaches 5-year high: a good omen for sale?

Fixed-rate mortgages follow the course of the 10-year US Treasury note

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which collapsed as investors became increasingly concerned about the health of the economy and the potential impact of a long trade war. Meanwhile, inflation has remained tame. The markets and some analysts now expect the Federal Reserve to lower interest rates this year.

Lower rates affect the property market in unexpected ways. Housing loan demand was so robust that mortgage lenders' margins became positive for the first time in almost three years.

See: The average variable rate mortgage is nearly $ 700,000. The following tells us this:

This is what Fannie Mae's mortgage banking survey for the second quarter published Wednesday. This survey also found that for the first time in more than two years, a majority of lenders report or expect an increase in refinancing volume.

Whether mortgage lenders are profitable or not is not just an industry. It is often the case that lenders lower their standards when they become hungry for revenue, even at the height of the real estate bubble a decade ago. Fannie Mae said in his publication The Lenders' Survey that "the significant loosening of lending standards belongs to the past."

Related: Real estate sector at the turning point causes stock analysts to turn over its ratings

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