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The Fed didn't make a move at the March meeting, but what the Fed had to say about future policy has implications for mortgage rates.

The Fed didn't make a move at the March meeting, but what the Fed had to say about future policy has implications for mortgage rates.

Mortgage Rates Radar 09/15/2015: Mortgage Rates, Market Await Fed

Rates on the most popular types of mortgages stood still this week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages was unchanged at 3.99 percent, the third such value in a row. Conforming 5/1 Hybrid ARM rates were also unchanged, closing the Wednesday-to-Tuesday wraparound weekly survey for a second week at an average of 3.02 percent.

We still don't know what the Fed will do

"Markets are unclear as to whether or not the Fed will make a change in policy come Thursday," said Keith Gumbinger, vice president of HSH.com. "Mortgage rates are holding steady, as investors await a change to come, or not, and the update to Fed policy expectations that will come with the end of the meeting will reveal a lot about the future direction of interest rates."

The Federal Reserve raises or lowers interest rates to help stimulate the economy when it is soft, or to temper growth and trim inflationary pressures when it is running firm. For some time, these signals have been mixed, with growth showing some strong signs while significant inflation remains absent. In the best of circumstances, the Fed can change rates preemptively, so as to quash inflation before it gets a toehold, but with many headwinds facing the economy, it's not clear that a threat is forming, despite firming growth.

Borrowers: Don't worry about the Fed

"The Fed has only blunt tools to shape the economy, and even then, they can take a while to have the desired effect," adds Gumbinger. "A change to the federal funds rate may take months to completely filter through. That said, a small change to short-term rates shouldn't derail anyone's plans to buy a home or refinance, as the federal funds rate doesn't have much to do with long-term mortgage rates and long-term rates will remain very favorable even if they do drift higher over time as a result of any change."

Current mortgage rates

Average mortgage rates and points for conforming residential mortgages for the week ending September 15, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   3.99 percent
  • Average Points: 0.17

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.02 percent
  • Average Points: 0.10

Average mortgage rates and points for conforming residential mortgages for the previous week ending September 08 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   3.99 percent
  • Average Points: 0.14

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.02 percent
  • Average Points: 0.09

Methodology

The Weekly Mortgage Rates Radar reports the average rates and points offered on conforming 30-year fixed-rate mortgages and conforming 5/1 ARMs. The weekly mortgage rate survey covers a large sample of mortgage lenders and is conducted over a Wednesday-to-Tuesday cycle, with data released every Wednesday. HSH.com’s survey helps consumers find the best rates on home loans in changing market conditions. Unlike mortgage rate surveys that report average rates only, the Weekly Mortgage Rates Radar’s inclusion of both average rates and average points provides a more accurate view of mortgage terms currently offered by lenders.

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