3.91: Incremental Increase in Rates Before Fed Announcement

• September 17, 2015

by Tianna Mañón

Freddie Mac reported an incremental change to interest rates today in advance of an expected announcement from the Federal Reserve as to whether it will increase rates for the first time in years.

In a news release, the lending giant reported that the 30-year fixed-rate mortgage averaged 3.91 percent with an average 0.6 point this week. Freddie Mac last reported a 3.91 percent interest rate in early August. A year ago, rates sat at 4.23 percent.

“The Treasury market was relatively quiet this week, and as a result the 30-year mortgage rate barely budged,” said Sean Becketti, chief economist with Freddie Mac. Becketti added that today’s announcement shouldn’t move the needle all that much.

“Even if the Fed decides to raise short-term interest rates, we don’t expect a significant impact on the housing market. We’re still on track for the best year of home sales since 2007. While our outlook incorporates a moderate increase in mortgage rates over the next 18 months, rates are likely to remain low by historical standards and should not be a determining factor for most Americans looking to purchase a home.”

The UrbanTurf Mortgage Rate Disclaimer: The rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate.

This article originally published at http://dc.urbanturf.com/articles/blog/3.91_inflation_contributes_to_incremental_increase/10344