Freddie Mac: Fixed Mortgage Rates Decline After Fed’s Decision To Defer

Posted by Patrick Barnard on September 25, 2015 No Comments
Categories : Residential Mortgage

Fixed mortgage rates for the week ended Sept. 24 showed a decline following the Federal Reserve's decision to defer a hike in the Federal funds rate, according to Freddie Mac's weekly Primary Mortgage Market Survey.

The average rate for a 30-year fixed-rate mortgage (FRM) was 3.86%, a decrease from the previous week when it averaged 3.91%. A year ago at this time, the 30-year FRM averaged 4.2%.

The average rate for a 15-year FRM was 3.08%, a decrease from the week prior when it averaged 3.11%. A year ago at this time, the 15-year FRM averaged 3.36%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.91%, down from the previous week's 2.92%. A year ago, the five-year ARM averaged 3.08%.

The average rate for a one-year Treasury-indexed ARM this past week was 2.53%, down from the previous week's 2.56%. A year ago, the one-year ARM averaged 2.43%.

‘Global growth concerns and lackluster inflation convinced the Fed to defer a hike in the Federal funds rate. In response, Treasury yields fell about nine 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 five basis points to 3.86 percent,’ says Sean Becketti, chief economist for Freddie Mac.

‘Mortgage rates have remained below four percent for nine 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,’ Becketti adds.

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