Average fixed mortgage rates hardly budged this week as the Federal Open Market Committee meets later today to vote on an interest-rate increase for the first time in more than nine years.
"The Treasury market was relatively quiet this week, and as a result the 30-year mortgage rate barely budged," said Sean Becketti, Freddie Mac's chief economist. "Inflation fell shy of expectations in August, up .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 30-year fixed-rate mortgage (FRM) averaged 3.91 percent with an average .6 point for the week ending Sept. 17, 2015, up from last week when it averaged 3.9 percent. A year ago at this time, the 30-year FRM averaged 4.23 percent.
- The 15-year fixed rate mortgage this week averaged 3.11 percent with an average .6 point, up from last week when it averaged 3.1 percent. A year ago at this time, the 15-year FRM averaged 3.37 percent.
- The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.92 percent this week with an average .5 point, up from last week when it averaged 2.91 percent. A year ago, the 5-year ARM averaged 3.06 percent.
- The 1-year Treasury-indexed ARM averaged 2.56 percent this week with an average .2 point, down from last week when it averaged 2.63 percent. At this time last year, the 1-year ARM averaged 2.43 percent.
"Even if the Fed decides to raise short-term interest rates, we don't expect a significant impact on the housing market. We're still on track for the best year of home sales since 2007. And in contrast to two years ago, when mortgage rates spiked in response to the Taper Talk, the economy is in much better shape and markets have been expecting the Fed to act for months. While our outlook incorporates a moderate increase in mortgage rates over the next 18 months, rates are likely to remain low by historical standards and should not be a determining factor for most Americans looking to purchase a home," Becketti said.