Mortgage rates slipped down this week, with fixed mortgage rates hitting their lowest levels since June, according to Freddie Mac. Rates continued to ease up to Thursday’s announcement by the Federal Reserve that it would continue its $85bn-per-month quantitative easing program.
“The Fed saw improvement in economic activity and labor market conditions since it began its asset purchase program, but noted the recovery in the housing market slowed somewhat in recent months and unemployment remains elevated,” said Frank Nothaft, Freddie Mac vice president and chief economist. “As a result, there was no policy change which should help sustain low mortgage rates in the near future.”
The average rate for a 30-year fixed-rate mortgage fell to 4.10% from last week’s 4.13%. A year ago, the average rate for the 30-year FRM was 3.39%. The average rate for 15-year FRMs also fell, finishing the week at 3.20%. Last week, the average rate on the 15-year FRM was 3.24%. A year ago at this time, it was 2.70%.
The 5-year Treasury-indexed adjustable-rate mortgage was also down, averaging 2.96% this week. Last week, the average rate for the 5-year ARM was 3.0%. A year ago, the average rate was 2.74%.
Only the 1-year Treasury-indexed ARM was up this week, rising to 2.64% from last week’s 2.60%. A year ago, the average rate was 2.58%.