Fixed mortgage rates hit lowest level of the year

Last Friday’s labor report offers some positive news, as the economy added 242,000 jobs, 265,000 by the private sector. 

Still, housing market experts estimate it will still take several more years to reach a sustainable level of recovery.  

The 30-year fixed rate has averaged less than 5 percent during President Obama’s term, well below the levels seen during previous administrations. 

Although lower rates are needed to bolster sagging sales, some experts expect a precipitous rise in rates to occur. George Mason University real estate professor Tony Sanders estimates a long-term increase of about 3.25 percent. 

Rates, which track the yield on the 10-year Treasury note, dropped to historic lows last year as the economic recovery sputtered. Loan rates had been on the rise until they started dropping again as the busy spring buying season commenced.