Here’s some good news for current house hunters: After a significant drop last week, U.S. mortgage rates have again declined, according to Freddie Mac. The average 30-year fixed mortgage averaged 3.58 percent for the week ending April 14, down from 3.59 percent the previous week.
A year ago, mortgage rates stood at 3.67 percent. The historic low for 30-year rates was 3.31 percent in November 2012.
What’s Going on With Rates?
It was widely expected that mortgage rates would gradually rise in 2016 after the Federal Reserve began it’s long-speculated move to raise the benchmark federal-funds back in December.
“Demand for Treasuries remained high this week, driving yields to their lowest point since February,” said Sean Becketti, chief economist for Freddie Mac. “In response, the 30-year mortgage rate fell 1 basis point to 3.58 percent. This rate represents yet another low for 2016 and the lowest mark since May 2013.”
“MBA (Mortgage Bankers Association) currently forecasts the Fed will make two more moves to increase rates this year, with the first rate hike forecasted for the June meeting,” Fisher said in an email. “We think that mortgage rates will rise gradually through the end of the year, averaging about 4.2% in the fourth quarter.” Lynn Fisher, said Vice President of Research and Economics at the MBA.