Economic concerns both domestically and globally are helping drive mortgage rates lower. Experts wonder where the bottom might be.
Date released by Freddie Mac, via the Washington Post, shows the 30-year fixed-rate average slipped to 4.28 percent with an average 0.4 point. It was 4.31 percent a week ago and 4.45 percent a year ago.
The 15-year fixed-rate average fell to 3.71 percent with an average 0.4 point. It was 3.76 percent a week ago and 3.91 percent a year ago. The five-year adjustable rate average was unchanged at 3.84 percent with an average 0.3 point. It was 3.68 percent a year ago.
“Mortgage rates fell this week and have yet to account for yesterday’s Fed’s announcement,” Danielle Hale, chief economist for Realtor.com, told the Post. “Looking ahead to next week, we could see rates fall even further based on the decision to hold rates steady combined with guidance that emphasized patience.”
The article also pointed out the Federal Reserve did not increase its benchmark rate Wednesday and signaled it would not hike rates this year, a sign the central bank is concerned about a slowing economy. The Fed’s retreat comes amid a slowdown in Europe and China, the uncertain status of Brexit and indications of lower spending by U.S. consumers and businesses. The Fed does not set mortgage rates, but its decisions influence them.