Freddie Mac reported the 30-year fixed mortgage rate down 3 basis points to 4.28% in the March 21 week and the 15-year fixed rate down 5 basis points to 3.71%. The 5/1-year ARM rate was unchanged at 3.84%.
The declines are small, but sufficient that it may bring in a few fencesitters into the housing market to lock in rates during the spring buying season. However, with expectations that the Federal Reserve will not be hiking rates for the remainder of 2019, there is little reason to expect rates to go up again in the near term. It is now a question of whether rates are about at their bottom or if they will go lower.
The month-to-date average for March is at 4.33% for the 30-year rate, 3.77% for the 15-year rate, and 3.85% for the 5/1-year ARM. Fixed rates are at lows not seen in over a year and ARMs are at eight-month lows.
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