After a few years of historically low interest rates, we’re seeing a little bit of an upward trend. Last month saw a 4.58 percent rate – but that rate has now fallen to 4.50 percent and is expected to fall at least another 10 basis points, according to SocketSite.
At this time a year ago, the 30-year fixed rate was 3.49 percent. It’s averaged 6.75 percent since 1990. The 15-year fixed rate is down to 3.4 percent from 3.59 percent last week; a year ago at this time, it averaged 2.77 percent.
As for 5-year Treasury-indexed hybrid adjustable rate mortgages, they averaged 3.11 percent this week with an average 0.5 point. That’s down from last week when it averaged 3.22 percent, but up from a year ago at 2.76 percent.
“Mortgage rates drifted downwards this week amid signs of a weakening economic recovery,” Freddie Mac vice president and chief economist Farnk Nothaft said in a statement, adding that retail sales and industrial production were on the right, but consumer sentiment is currently falling.
“This, in part, was why the Federal Reserve chose to maintain its MBS and bond-buying program,” Nothaft added. “It 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.”
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