Tuesday, March 03, 2015
According to Bankrate.com’s weekly national survey, mortgage rates unwound a recent increase last week, with the benchmark 30-year fixed mortgage rate pulling back to 3.90 percent. The 30-year fixed mortgage has an average of 0.29 discount and origination points.The average 15-year fixed mortgage dropped to 3.15 percent while the larger jumbo 30-year fixed mortgage settled at 4.07 percent. Adjustable rate mortgages were down also, with the 5-year ARM falling to 3.22 percent and the 7-year ARM sinking to 3.44 percent.
Mortgage rates moved lower last week after indications that maybe the Federal Reserve isn’t going to raise interest rates as soon as markets had thought. The minutes from the Federal Open Market Committee’s January meeting showed a hesitancy to raise interest rates on the part of Fed members. The concern was that despite recent signs of improvement in the job market and overall economy, raising interest rates too soon could douse the recovery. Since mortgage rates and long-term bond yields move in anticipation of Fed interest rate moves, any change in the outlook for Fed action can have a pronounced effect on mortgage rates.
Source: Bankrate.com
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