Average fixed mortgage rates declined following the Federal Reserve’s decision to defer a hike in the Federal funds rate, says Freddie Mac’s Primary Mortgage Market Survey®.
The 30-year fixed-rate mortgage (FRM) averaged 3.86 percent with an average 0.7 point for the week ending September 24, 2015, down from the last week when it averaged 3.91 percent. A year ago at this time, the 30-year FRM averaged 4.20 percent.
“Global growth concerns and lackluster inflation convinced the Fed to defer a hike in the Federal funds rate,” says Sean Becketti, chief economist, Freddie Mac. “In response, Treasury yields fell about 9 basis points over the week, with some larger day-to-day swings along the way. In response, the interest rate on 30-year fixed rate mortgages dropped by 5 basis points to 3.86 percent. Mortgage rates have remained below 4 percent for 9 consecutive weeks and have remained range-bound between 3.8 and 4.1 percent since May. These low mortgage rates have supported strong home sales, and 2015 is on pace to have the highest home sales total since 2007.”
The 15-year FR averaged 3.08 percent with an average 0.6 point, down from the last week when it averaged 3.11 percent. A year ago at this time, the 15-year FRM averaged 3.36 percent.
Results show the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.91 percent with an average 0.5 point, down from the week prior when it averaged 2.92 percent. A year ago, the 5-year ARM averaged 3.08 percent.
The 1-year Treasury-indexed ARM averaged 2.53 percent this week with an average 0.2 point, down from last week when it averaged 2.56 percent. At this time last year, the 1-year ARM averaged 2.43 percent.
For more information, visit www.freddiemac.com.