Interest rates may remain lower longer than originally expected. The Federal Reserve recent comments suggest it may continue to hold off in raising short-term interest rates and weaker-than-expected consumer demand is all pushing Treasury yields lower.
“In response, the 30-year mortgage rate climbed 6 basis points to 3.82 percent, marking 12 consecutive weeks below 4 percent. Late-breaking news suggests mortgage rates may remain in this territory a while longer. After this week’s survey closed, Federal Reserve Governor Daniel Tarullo was quoted suggesting the Fed may not act this year, and Wednesday the 10-year Treasury closed under 2 percent in reaction to economic releases indicating weak consumer demand.”
Freddie Mac reports the following national averages for the week ending Oct. 15:
- 30-year fixed-rate mortgages: averaged 3.82 percent, with an average 0.6 point, rising from last week’s 3.76 percent average. A year ago, 30-year rates averaged 3.97 percent.
- 15-year fixed-rate mortgages: averaged 3.03 percent, with an average 0.6 point, increasing from last week’s 2.99 percent average. Last year this time, 15-year rates averaged 3.18 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 2.88 percent, with an average 0.4 point, holding the same as last week. A year ago, 5-year ARMs averaged 2.92 percent.
- 1-year ARMs: averaged 2.54 percent, with an average 0.2 point, dropping from last week’s 2.55 percent. Last year at this time, 1-year ARMs averaged 2.38 percent.
Source: Freddie Mac