Mortgage Rates Remain Steady Ahead Of Federal Reserve Decision

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Average fixed mortgage rates were mainly unchanged going into the Federal Open Market Committee's vote on an interest rate increase for the first time in over nine years, according to Freddie Mac's Primary Mortgage Market Survey.

The average rate for a 30-year fixed-rate mortgage (FRM) was 3.91%, up slightly from 3.90% the previous week. A year ago at this time, the 30-year FRM averaged 4.23%.

The average rate for a 15-year FRM was 3.11%, up slightly from last week when it averaged 3.10%. A year ago at this time, the 15-year FRM averaged 3.37%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.92%, up slightly from 2.91% the previous week. A year ago, the five-year ARM averaged 3.06%.

The average rate for a one-year Treasury-indexed ARM was 2.56%, down from last week when it averaged 2.63%. At this time last year, the one-year ARM averaged 2.43%.

‘The Treasury market was relatively quiet this week, and as a result, the 30-year mortgage rate barely budged. Inflation fell shy of expectations in August, up 0.2 percent over the past year, but core consumer prices increased 1.8 percent year over year. Low mortgage rates help to support housing markets, which continue to bring good news. The National Association of Home Builders' HMI came in above expectations at 62, which is a 10-year high,’ says Sean Becketti, Freddie Mac's chief economist.

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