Industry News

Fed action sends real estate rates lower

Financial markets 'breathe a sigh of relief'

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Mortgage rates dropped this week following Tuesday's Fed announcement that its 13-month-long interest rate hikes may be winding down, according to surveys conducted by Freddie Mac and Bankrate.com. In Freddie Mac's survey, the 30-year fixed-rate mortgage averaged 6.3 percent for the week ended today, down from last week's average of 6.32 percent. The average for the 15-year fixed-rate mortgage is 5.85 percent, down from last week's average of 5.87 percent. Points on both the 30- and 15-year averaged 0.5. The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 5.77 percent this week, with an average 0.5 point, down slightly from last week when it averaged 5.78 percent. The one-year Treasury-indexed ARM averaged 5.15 percent, with an average 0.6 point, down slightly from last week when it averaged 5.16 percent. "Earlier in the week, interest rates were a bit higher, as financial markets were a little anxious about what language the Federal Reserve (Fed) would use in it...