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Mortgage rates barely budged this week, but that likely soon will change after the Federal Reserve’s bond tapering announcement this week.
The 30-year fixed-rate mortgage averaged 2.88% for the week ending Sept. 23, Freddie Mac reports.
Rates are largely predicted to rise on the heels of the Fed’s decision to reduce its bond purchases before the end of the year. The National Association of REALTORS® is forecasting that 30-year fixed-rate mortgages will average 3.5% by mid-2022.
“Even with this increase, consumers should bear in mind that these rates will still be historically low,” says NAR’s Nadia Evangelou, senior economist and director of forecasting. The historical average for the 30-year fixed-rate mortgage is 8%.
Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 23:
- 30-year fixed-rate mortgages: averaged 2.88%, with an average 0.7 point, up slightly from last week’s 2.86% average. Last year at this time, 30-year rates averaged 2.90%.
- 15-year fixed-rate mortgages: averaged 2.15%, with an average 0.6 point, rising from last week’s 2.12% average. A year ago, 15-year rates averaged 2.40%.
- 5-year hybrid adjustable-rate mortgages: averaged 2.43%, with an average 0.3 point, falling from last week’s 2.51% average. A year ago, 5-year ARMs averaged 2.90%.
Freddie Mac reports average commitment rates along with points to better reflect the total upfront cost of obtaining a mortgage.