US average 30-year mortgage rate declines to 3.48 percent

The announcement came too late in the week to be factored into the Federal Home Loan Mortgage Corp.’s mortgage-rate survey.

The housing market remains strong, with strengthening home sales and what is likely to be the lowest annual average for mortgage rates in more than 40 years, according to new data from Freddie Mac.

The average rate for a 30-year fixed-rate mortgage (FRM) was 3.50%, up from 3.44% the previous week.

The 30-year fixed-rate mortgage averaged 3.48% in the September 22 week, down from 3.50% in the prior week. This is down from last year’s 3.86%. The average 30-year FRM has been below 3.50 percent for the past 12 weeks and below 4 percent for more than nine months.

The yield on the 10-year notes fell to 1.66 percent Wednesday from 1.70 percent a week earlier.

The 15-year fixed averaged 2.76 percent, one basis point better than last week’s 2.77 percent. It is down from last week’s 2.82% and last year’s 2.91%. “Despite the decrease in rates, the Refinance Index plunged 8% to its lowest level since June”.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.8%, down from last week when it averaged 2.82%, while a year ago it averaged 2.91%.

WASHINGTON (AP) – Long-term US mortgage rates edged lower this week.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. “The share of cash-out refinances grew to 41 percent in the second quarter of 2016, compared to 38 percent in the first quarter and 15 to 20 percent during the housing crisis”.

In a way, mortgage rates are being held hostage by the ongoing debate on if and when the Federal Reserve will raise interest rates, experts say. The fact that three FOMC members dissented is definitely a sign that the Fed is moving towards that anticipated rate increase.