Freddie Mac report interest rates were lower at the start of February for 30-year and 15-year mortgages, and unchanged for 5/1-year adjustable rates. The 30-year fixed rate was 4.41% in the February 7 data, down from 4.46% for January as a whole and 46 basis points below the near-term peak of 4.87% in November 2018. The 15-year fixed rate was 3.84% in the week, down from 3.91% for January, and down 44 basis points from 4.28 in November 2018. The 5/1-year adjustable rate has not fallen as much. It was unchanged at 3.91% at the start of February from January, and off only 20 basis points from the 4.11% in November.
Lower mortgage interest rates may provide an incentive for potential homebuyers to enter the market this spring at a time when the upward momentum for prices has moderated, although supplies of more sought-after units are still limited.
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