Freddie Mac reported on Feb. 11 that the average 30-year fixed
rate mortgage fell from 3.72 percent to 3.65 percent, its lowest point in 10
months. Meanwhile, the average rate on a 15-year fixed rate mortgage slipped
from 3.01 percent the week before to 2.95 percent. Despite the Federal
Reserve's decision to hike interest rates at the end of 2015, mortgage rates
have continued to dip. Volatility in financial markets driven by the falling
price of oil and concerns of a global economic slowdown has pushed investors
more towards U.S. Treasuries. This, in turn, has kept rates low for potential
home buyers. The week-to-week decrease came soon after Federal Reserve Chairman
Janet Yellen's testimony on Capitol Hill in which she was vague on the topic of
a rate increase in March. Freddie Mac chief economist Sean Becketti says the
drop in mortgage rates is not a surprise considering that mortgage rates adjust
slower to capital market rates.
From "Mortgage Rates Fall for 6th Straight Week, Hit 10-Month Low"
USA Today (02/11/16) Mitchell, Benjamin F.
From "Mortgage Rates Fall for 6th Straight Week, Hit 10-Month Low"
USA Today (02/11/16) Mitchell, Benjamin F.
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