Mortgage rates fell to 3.61 percent last week, down from the prior week where we saw rates at 3.66 percent on an average 30-year fixed loan. Rates have been holding steady below 4 percent all year and have been on the decline since March.
Home loans have been getting cheaper since December, when the Federal Reserve raised its benchmark rate on short-term loans. Fed Chair Janet Yellen and her team left that rate unchanged at their meeting last month.
“The Fed’s decision to stand pat followed by a week of assorted unsettling news drove Treasury yields lower,” Freddie chief economist Sean Becketti said. “Since the start of February, mortgage rates have varied within a narrow range, providing an extended period for house hunters to take advantage.”
Odds are of rates being raised during the June meeting are low, giving house hunters the advantage as we enter peak home-buying season. Though the Fed doesn’t exactly control where the mortgage rates are, they do affect borrowing costs.
How long do you think that the rates will continue trending down before we see a rise? Let us know!