The average rate for fixed mortgages in the US slipped over the past week, as the market waits for the Federal Reserve’s decision regarding its monetary policy.
According to a survey by mortgage lender Freddie Mac, the average rate for 30-year fixed mortgages stands at 3.88 percent this week, from 3.9 percent a week ago and 4.78 percent a year ago. On the other hand, rates on 15-year fixed mortgages averaged 3.12 percent against 3.13 percent in the previous week.
“Fixed mortgage rates held near record lows this week as the markets waited for the Federal Reserve’s April 25th monetary policy announcement following two days of deliberations,” said Frank Nothaft, Chief Economist at Freddie Mac.
“The Fed stated that it expects economic growth to remain moderate and then pick up gradually. In addition, it noted that labour market conditions have improved in recent months and it anticipates the unemployment rate will decline gradually.”
Meanwhile, five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 2.85 percent this week, up from 2.78 percent a week ago. Last year it averaged 3.51 percent. Rates of the one-year Treasury-indexed ARM averaged at 2.74 percent versus 2.81 percent last week.
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