Mortgage Rates Drop to Six-Week Low
WASHINGTON – A touch of optimism over U.S.-China trade talks seem to be moving the average fixed-rate mortgage lower. The 30-year fixed rate fell to 3.66% in the latest weekly survey.
“The housing market continues to steadily gain momentum with rising homebuyer demand and increased construction due to the strong job market, ebullient market sentiment and low mortgage rates,” Freddie Mac said in its weekly release. “Residential real estate accounts for one-sixth of the economy, and the improving real estate market will support economic growth heading into next year.”
Before hitting an average 3.66% this week, the 30-year FRM averaged 3.75% last week; one year ago it was 4.81%.
The 15-year mortgage rate also fell this week to 3.15%. It was 3.20 percent one week ago and 4.24% one year earlier.
Five-year adjustable rate mortgages declined to 3.39% this week; last week it was 3.44% and one year ago, it was 4.09%.
The Federal Reserve lowered its benchmark rate recently for the third time this year, which can influence mortgage rates even if it doesn’t directly change them. However, further rate cuts aren’t expected soon barring changes to the Fed’s analysis of the U.S. economy.
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