Freddie Mac announced today that fixed mortgage rates backed off this week from a two-year high. Lenders are now offering the 30-year home loan at an average of 4.51% compared with 4.58% just a week ago.
The 15-year fixed-rate mortgage averaged 3.54%, It is down from 3.60%. Starting interest rates for popular types of variable-rate loans were up slightly.
August was as good as a month has been lately for mortgage rates. With this summer proving the volatility of the mortgage rates, it now seems that they have eased off.
Vice President and Chief Economist of Freddie Mac, Frank Nothaft fully recognizes the fluctuation we have seen and that the housing market needs to be watched closely.
“The Fed is monitoring the housing market closely after the run up in mortgage rates over the past few months. The 13.4 percent drop in new home sales in July led financial markets to speculate whether the Fed might delay reducing its bond purchases and allowed long-term bond yields and fixed mortgage rates to decline over the week.”
While the rates have plateaued and even dropped slightly it is not likely that the drop in rate will continue but in the mean time it will give on the fence “refinancers” a few more moments to make their decision.