Mortgage rates continue to fall, following the Federal Reserve’s decision to delay tapering its bond purchase program. The Federal Reserve announced last week that it would delay winding down its $85 billion per month bond purchasing program, which has helped to keep mortgage rates near record lows in recent years.
“These low rates should somewhat offset the house price gains seen the last number of months and keep housing affordability elevated,” says Frank Nothaft, Freddie Mac’s chief economist.
The average rate on the 30-year fixed-rate mortgage, the most popular option among home buyers, fell to its lowest level this week since the week ending July 25, Freddie Mac reports in its weekly mortgage market survey.
Freddie Mac reports the following national averages for the week ending Sept. 26:
- 30-year fixed-rate mortgages: averaged 4.32 percent, with an average 0.7 point, dropping from last week’s 4.50 percent average. Last year at this time, 30-year rates averaged 3.40 percent.
- 15-year fixed-rate mortgages: averaged 3.37 percent, with an average 0.7 point, dropping from last week’s 3.54 percent average. Last year at this time, 15-year rates averaged 2.73 percent.
- 5-year hybrid adjustable-rate mortgage: averaged 3.07 percent, with an average 0.5 point, dropping from last week’s 3.11 percent average. Last year at this time, 5-year ARMs averaged 2.71 percent.