Mortgage Rates Move Lower Despite Ongoing Global Economic Instability

Despite ongoing instability in the global financial markets and the Fed’s announcement that it will likely hold interest rates steady in the near term, mortgage rates moved lower for a fourth consecutive week.

According to Freddie Mac’s Primary Mortgage Market Survey for the week ended Feb. 28, the average rate for a 30-year fixed-rate mortgage (FRM) was 3.79%, down from 3.81% the previous week. A year ago at this time, the 30-year FRM averaged 3.66%.

The average rate for a 15-year FRM was 3.07%, down from 3.10%. A year ago at this time, the 15-year FRM averaged 2.98%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.90%, down from 2.91%. A year ago, the five-year ARM averaged 2.86%.

“The yield on the 10-year Treasury stabilized around two percent this week, and the 30-year mortgage rate dipped two basis points to 3.79 percent,” says Sean Becketti, chief economist for Freddie Mac, in a release. “The recent market turmoil has given the Fed pause; as was universally expected, the Fed stood pat this week but kept its options open for a rate increase in March. This week’s housing releases confirmed the momentum of home sales going into 2016. A hesitant Fed, sub-four-percent mortgage rates (at least for a little while longer) and strong housing fundamentals should generate a three percent increase in home sales this year.”

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