Last week, the Federal Reserve chose to hold its benchmark rate of interest at a level that is near zero.
“Global growth concerns and lackluster inflation convinced the Fed to defer a hike in the Federal funds rate”, Sean Becketti, Freddie Mac chief economist, said in a statement.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.91% this week with an average 0.5 point, down from last week when it averaged 2.92%.
The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days.
The Market Composite Index, a measure of mortgage loan application volume, increased 13.9 percent on a seasonally adjusted basis from one week earlier. But there was rate decreases in other loan products, such as the 15-year fixed, 5/1 ARM, and 30-year jumbo.
Separately, the Federal Financial Institutions Examination Council (FFIEC) announced the availability of data on last year’s mortgage lending transactions at 7,062 United States financial institutions covered by the Home Mortgage Disclosure Act (HMDA).
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 3.99%, down from 4.04% the previous week.
The FHA share of total applications decreased to 12.9 percent from 14.2 percent the week prior. The short term, popular 15 year fixed rate loans at the bank are published at 3.21% and April of 3.392% today.
30-year fixed-rate mortgage (FRM) averaged 3.86 percent with an average 0.7 point for the week ending September 24, 2015, down from last week when it averaged 3.91 percent.
Mortgage rates moved lower Tuesday amid a sell-off in the stock market; they are now at the lowest levels in four months, which could prompt even more current borrowers and potential buyers to take advantage. “Higher-priced” loans – those with APRs that exceed prime offer rates by 1.5 points for first-lien loans – accounted for 8 percent of all first-lien loans in 2014, up three points from 2013.
Mortgage rates at lowest ever level