Mortgage rates inched lower during the week ended Sept. 29, following the Federal Open Market Committee’s decision to leave short-term interest rates unchanged.
According to Freddie Mac’s Primary Mortgage Market Survey, the average rate for a 30-year fixed-rate mortgage (FRM) was 3.42%, down from 3.48% the previous week. A year ago at this time, the 30-year FRM averaged 3.85%.
The average rate for a 15-year FRM was 2.72%, down from 2.76%. A year ago at this time, the 15-year FRM averaged 3.07%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.81%, up from 2.80%. A year ago, the five-year ARM averaged 2.91%.
“Investors flocked to the safety of government bonds causing the 10-year Treasury yield to continue its descent following the FOMC’s decision to leave rates unchanged,” said Sean Becketti, chief economist for Freddie Mac, in a release. “The 30-year fixed-rate mortgage responded by dropping six basis points before landing at 3.42 percent – a ten-week low. The course of the economy is uncertain, yet consumers continue to be a bright spot. The September consumer confidence index is up three percent to 104.1, exceeding forecasts and reaching a new cycle high.”