Mortgage Rates Move Lower as Spring Home Buying Season Approaches

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Mortgage rates moved lower the same week the Fed announced that it would not be raising the fed funds rate anytime soon.

The average rate for a 30-year fixed-rate mortgage was 4.28%, down from 4.31% last week, according to Freddie Mac’s Primary Mortgage Market Survey.

A year ago at this time, the average rate for a 30-year was 4.45%. 

Sam Khater, chief economist for Freddie Mac, says the drop in rates forebodes well for the spring home buying season.

“Mortgage rates have dipped quite dramatically since the start of the year and house prices continue to moderate, which should help on the home buyer affordability front,“ Khater says in a statement. “The combination of improving affordability and more inventory than the last few spring selling seasons should lead to improved home sales demand.”

The average rate for e 15-year fixed-rate mortgage was 3.71%, down from 3.76% the previous week. A year ago at this time, the average rate for a 15-year was 3.91%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.84% unchanged from last week. A year ago at this time, the average rate for a five-year ARM was 3.68%.

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