Mortgage Rates Tumble to 6-Week Low
Mar 26th, 2015 @ 7:26 AM by Amber Nelson
During the week ended March 26, 2015 the average rate on a 30-year fixed-rate mortgage dropped to 3.69 percent, excluding fees, down from 3.78 percent the week before. A year earlier, the rate was much higher at 4.40 percent.
The 15-year fixed rate mortgage also sank this week, falling to 2.97 percent, from 3.06 percent a week ago. Compared with last year the rate is down almost a half percentage point from 3.42 percent.
The one-year adjustable rate mortgage was unchanged with a rate of 2.46 percent this week. The average rate is also hardly changed from last year’s 2.44 percent.
“Low mortgage rates are a welcome sign for those in the market to buy a home this spring season and will help to support homebuyer affordability,” said Freddie Mac deputy chief economist Len Kiefer. “Existing home sales in February increased slightly, but less than expected, to a seasonally adjusted annual rate of 4.88 million units. Meanwhile, new home sales [PDF] outperformed expectations and surged 7.8 percent to an annual pace of 539,000 units.”
Mortgage rates had been making a steady upward run for the past six weeks as investors wondered if the Federal Reserve would raise its rate at it March 17-18 meeting. The mortgage markets relaxed after the Fed assured the public it still saw reason to keep rates low.
“The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run,” the Fed said in a statement. Mortgage rates may be able to remain low for the housing market now until the Fed’s next meeting at the end of April.
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.