US mortgage rates continue to fall
Figures released by US mortgage giant Freddie Mac showed a typical 30-year rate had fallen from 3.8% to 3.75% in the last week.
Mortgages in the United States are typically taken out as a fixed rate for 30 years, compared to 25-year terms in the UK.
The bank said economic uncertainty in many areas of the world had caused global investors to return to the United States, pushing down rates in the country’s mortgage market.
A year ago the average 30-year mortgage stood at 4.28%. The current rates are only slightly above the lowest ever rates recorded in May 2013.
The rate for a 15-year mortgage, generally taken by homeowners who have refinanced, dropped to 3.03% from 3.07% in the last seven days.
Average fees paid by mortgage borrowers in America remained flat at 0.6% of the total loan.
“Most British buyers are drawn to Orlando, where they can buy a property within a short driving distance of the local airport and enjoy family holidays in the sun,” Clare Nessling, director of Conti, wrote in Your Mortgage’s guide to mortgages in the USA.
“The Gulf coast is also popular, with locations such as Sarasota, St Petersburg, Bradenton and Naples featuring on many a British buyer’s wish list.
“The Atlantic coast also offers great investment opportunities, with plenty of gated communities to choose from and low prices to take advantage of.”