Despite ongoing instability in the global financial markets and the Fed’s announcement that it will likely hold interest rates steady in the near term, mortgage rates moved lower for a fourth consecutive week.
According to Freddie Mac’s Primary Mortgage Market Survey for the week ended Feb. 28, the average rate for a 30-year fixed-rate mortgage (FRM) was 3.79%, down from 3.81% the previous week. A year ago at this time, the 30-year FRM averaged 3.66%.
The average rate for a 15-year FRM was 3.07%, down from 3.10%. A year ago at this time, the 15-year FRM averaged 2.98%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.90%, down from 2.91%. A year ago, the five-year ARM averaged 2.86%.
“The yield on the 10-year Treasury stabilized around two percent this week, and the 30-year mortgage rate dipped two basis points to 3.79 percent,” says Sean Becketti, chief economist for Freddie Mac, in a release. “The recent market turmoil has given the Fed pause; as was universally expected, the Fed stood pat this week but kept its options open for a rate increase in March. This week’s housing releases confirmed the momentum of home sales going into 2016. A hesitant Fed, sub-four-percent mortgage rates (at least for a little while longer) and strong housing fundamentals should generate a three percent increase in home sales this year.”