WASHINGTON (AP) – U.S. long-term mortgage rates fell this week following a sharp rise the week before, making September the most volatile month for the key 30-year loan since March.
Mortgage rates have been running near historic lows, spurring prospective homebuyers, amid an uncertain economic outlook . Mortgage buyer Freddie Mac says the average rate on the 30-year, fixed-rate mortgage dropped to 3.64% from 3.73% last week. By contrast, the average rate stood at 4.72% a year ago.
A sharply divided Federal Reserve last week cut its benchmark short-term interest rate for a second time this year but declined to signal that further cuts are likely in 2019. The Fed rate influences many consumer and business loans.
The average rate for 15-year, fixed-rate home loans declined this week to 3.16% from 3.21% last week.
The average fee on 30-year fixed-rate mortgages rose this week to 0.6 point from 0.5 point.
The average fee for the 15-year mortgage was unchanged at 0.5 point.
The average rate for five-year adjustable-rate mortgages fell to 3.38% from 3.49%. The fee remained at 0.4 point.
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