Rates on 30-Year FRMs Remain Low as Stimulus Approaches

The average rate for a 30-year Freddie Mac loan stayed at 3.55% for the week ending Sept. 13 as markets speculated on the possibility of further stimulus from the Federal Reserve.

If the Fed does take action lower mortgage rates likely will follow. However, on Thursday the rate-indicative 10-year Treasury was rising, yielding 1.73% at deadline. During the week, it had risen above 1.76% compared to just below 1.6% last Friday.

Outside of the 30-year FRM, other shorter-term mortgage rates tracked by Freddie were either slightly lower or stable.

The 15-year FRM was down one basis point at 2.85% and the average weekly five-year Treasury-indexed hybrid rate was down three basis points at 2.72%. Borrowers paid on average 0.6 of a point for these loans as well as for 30-year product.

The average rate for a one-year Treasury ARM remained at 2.61% with 0.4 of a point.

A year ago, average weekly rates were as follows: 4.09% for a 30-year loan, 3.3% for a 15-year loan, 2.99% for a five-year Treasury hybrid and 2.81% for a one-year Treasury ARM.