Mortgage rates inched lower this week, following the Federal Reserve’s recent announcement that it would delay tapering its bond buying program. Mortgage rates have climbed more than one percentage point since May when speculation began that the Fed would start winding down its $85 billion per month bond buying program, which had helped keep mortgage rates low.
“Mortgage rates drifted downwards this week amid signs of a weakening economic recovery,” says Frank Nothaft, Freddie Mac’s chief economist. “This, in part, was why the Federal Reserve chose to maintain its MBS and bond-buying program. [The Fed] also cited the tightening of financial conditions observed in recent months, which in the case of the housing market means the rise in mortgage rates since May.”
Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 19:
- 30-year fixed-rate mortgages: averaged 4.50 percent, with an average 0.7 point, dropping from last week’s 4.57 percent average. Last year at this time, 30-year fixed-rate mortgage averaged 3.49 percent.
- 15-year fixed-rate mortgages: averaged 3.54 percent, with an average 0.7 point, dropping from last week’s 3.59 percent average. Last year at this time, 15 year rates averaged 2.77 percent.
- 5-year adjustable-rate mortgages: averaged 3.11 percent, with an average 0.5 point, dropping from last week’s 3.22 percent average. A year ago, 5-year ARMs averaged 2.76 percent.
- 1-year ARMs: averaged 2.65 percent, with an average 0.4 point, dropping from last week’s 2.67 percent average. A year ago, 1-year ARMs averaged 2.61 percent.