NEW YORK (CNNMoney.com) -- Rates on 30-year fixed mortgages fell for the first time in three weeks after the Federal Reserve said last week that it expects inflation to level off, according to mortgage backer Freddie Mac.
Freddie Mac (FRE, Fortune 500) said that 30-year fixed-rate mortgages averaged 6.35% with an average 0.6 point in the week ending Thursday, down from 6.45% last week. Last year at this time, the 30-year loan averaged 6.63%.
"Mortgage rates reversed their three-week rise, falling this week after the release of the latest Federal Reserve's policy statement that it expects inflation to moderate later this year," said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement. That led to market participants lowering their expectations about future rate hikes, he explained.
Last week, the Federal Reserve left its key short-term interest rate unchanged at 2%. For the previous nine months, however, the Fed had cut interest rates seven times. In thewritten statement released by the central bank at the time of the announcement, the Fed said it expects inflation pressures to ease later this year, although it remains concerned about increasing oil and commodity prices.
The 15-year fixed rate mortgage this week averaged 5.92% with an average 0.6 point, down from last week when it averaged 6.04%. A year ago at this time, the 15-year fixed rate mortgage averaged 6.30%.
Five-year adjustable-rate mortgages (ARMs) averaged 5.78% this week, with an average 0.7 point, down from last week when it averaged 5.99%. A year ago, the 5-year ARM averaged 6.29%.
One-year ARMs averaged 5.17% this week with an average 0.6 point, down from last week when it was 5.27%. At this time last year, the 1-year ARM averaged 5.71%.
See Also:
- ALB Commercial Capital to Pursue National Broker Strategy
- MyHome, NYC Kitchen & Bathroom Remodeling Co, Starts Green Kitchen Campaign
- CB Richard Ellis Group, Inc. Joins Forces with Vanke in China
- Lowest Gas Prices and Gas Savers from GovernmentAuctions.org
- Fannie Mae Redemption
[Via Home Mortgage Rates and Real Estate News]
No comments:
Post a Comment