Mortgage rates held in wait of the Federal Reserve’s decision on the key interest rate this week, according to Freddie Mac’s latest Primary Mortgage Market Survey® (PMMS®). The 30-year, fixed rate averaged 4.02 percent—a nudge down from 4.03 percent the week prior—while the 15-year, fixed rate averaged 3.27 percent. The 5-year, Treasury-indexed hybrid adjustable mortgage rate averaged 3.13 percent.
“The 10-year Treasury yield remained relatively flat this week, as did the 30-year mortgage rate, which fell one basis point to 4.02 percent,” says Sean Becketti, chief economist at Freddie Mac. “Markets have been erring on the side of caution following a weak advance estimate for first quarter GDP and the ‘s broadly expected decision to leave rates unchanged.”
The Federal Open Market Committee (FOMC), which met this week, announced no change to the key rate on Wednesday, stating that “the labor market has continued to strengthen even as growth in economic activity slowed” since its meeting in March, when it last voted to raise the rate. The movement of the key rate is indirectly related to the path of mortgage rates.
Source: Freddie Mac
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