Average fixed mortgage rates mostly stayed calm this week, ahead of the Federal Reserve’s vote on an interest-rate hike for the first time in more than nine years, Freddie Mac reports in its weekly mortgage market survey.
“The Treasury market was relatively quiet this week, and as a result the 30-year mortgage rate barely budged,” says Sean Becketti, Freddie Mac’s chief economist. “Low mortgage rates help to support housing markets, which continue to bring good news.”
The Federal Reserve voted Thursday to not raise rates yet, but Becketti says that even when the Fed does decide to raise short-term interest rates, “we don’t expect a significant impact on the housing market. We’re still on track for the best year of home sales since 2007 … While our outlook incorporates a moderate increase in mortgage rates over the next 18 months, rates are likely to remain low by historical standards and should not be a determining factor for most Americans looking to purchase a home.”
Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 17:
- 30-year fixed-rate mortgages: averaged 3.91 percent, with an average 0.6 point, rising from last week’s 3.90 percent average. A year ago, 30-year rates averaged 4.23 percent.
- 15-year fixed-rate mortgages: averaged 3.11 percent, with an average 0.6 point, inching up slightly from last week’s 3.10 percent average. Last year at this time, 15-year rates averaged 3.37 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 2.92 percent, with an average 0.5 point, increasing from last week’s 2.91 percent average. A year ago, 5-year ARMs averaged 3.06 percent.
- 1-year ARMs: averaged 2.56 percent, with an average 0.2 point, dropping from last week’s 2.63 percent average. A year ago, 1-year ARMs averaged 2.43 percent.