Mortgage rates were down slightly this week for the first time in five weeks. Freddie Mac reports that the average rate on a 30-year, fixed-rate mortgage fell to a national average of 6.74% this week, down from last week's 6.79%. Many economists are beginning to believe that the Federal Reserve will not continue to raise interest rates. Housing sales have been strong for five years in a row, yet are expected to decline by 7% this year, due to higher mortgage rates pricing people out of the market. Chief Economist for Freddie Mac Frank Nothaft says that a gradual rise in mortgage rates is expected this year, as long as the Fed doesn't raise rates. The financial markets expect that the Fed will only have one more interest rate hike this year. This has helped to slow the rise of mortgage interest rates. "This should keep mortgage rates relatively stable for the foreseeable future," said Nothaft. The average rate on a 15-year, fixed rate mortgage averaged 6.37% for the week, down from 6.44% last week. The 15-year fixed is a popular choice for homeowners who are refinancing. Adjustable rate mortgages also saw a decrease this week. One-year ARMs fell to 5.75% from 5.85% last week. The rates on five-year hybrids were down to an average of 6.33% for the week, from 6.39% the week prior. The reported rates do not include points. The 30-year mortgage carries a nationwide average fee of 0.6 point. The average fee for a 15-year fixed was 0.4 point. The five-year hybrid carried a fee of 0.5%, while the one-year ARM has a fee of 0.6 point. |
