Mortgage rates were largely unchanged this week, though the 15-year fixed reached a new low, according to mortgage financier Freddie Mac.
The benchmark 30-year fixed mortgage averaged 5.04 percent for the week ending September 24, unchanged from a week earlier but well below the 6.09 percent seen a year ago.
The 15-year fixed dipped a single basis point to a new record low 4.46 percent, the lowest it has been since Freddie Mac began tracking in 1991; a year ago it averaged 5.77 percent.
The five-year adjustable-rate mortgage held stead at 4.51 percent, but remains a point and a half below the 6.02 percent average seen last year.
Finally, the one-year ARM averaged 4.52 percent, down from 4.58 percent a week ago and 5.03 percent last year.
“In its September 23rd policy statement, the Federal Reserve (Fed) indicated that it plans to keep its benchmark interest rate exceptionally low for an extended period,” said Frank Nothaft, Freddie Mac chief economist.
“This will likely benefit consumers who opt for ARMs, because they are typically tied to shorter-term interest rates” (how mortgage rates are determined).
These rates are good for conforming loan amounts with 20 percent equity or down payment; interest rates tied to jumbo loans are pricing at least a point higher.
Keep in mind that mortgage rate adjustments will likely result in higher interest rates.
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