4.04: Mortgage Rates Respond to Global Markets

• July 9, 2015

by Tianna Mañón

Mortgage rates ticked down to 4.04 percent this week, essentially the level where rates were about a month ago.

The average rate on a 30-year fixed-rate mortgage was 4.04 percent with an average 0.6 point, Freddie Mac announced Thursday. Today’s rate is slightly lower than last week’s 4.08 percent and the 4.15 percent seen at this time last year. Mortgage rates have been fluctuating in the low 4 percent range for a few weeks now.

Sean Becketti, chief economist at Freddie Mac, said international events in financially struggling countries have impacted the rates homebuyers will see.

“Overseas volatility is likely to persist for some time, providing some restraint on potential U.S. rate increases. In addition, the minutes of the June meeting of the Federal Open Market Committee suggest the Federal Reserve will proceed cautiously — monitoring events both overseas and in the U.S. to ascertain the appropriate moment to begin raising short-term interest rates. As a result, mortgage rates may remain in the neighborhood of 4 percent for a while.”

UrbanTurf is following the trajectory of rates in this chart:

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/4.04_mortgage_rates_respond_to_global_markets/10103