by STAFF WRITER Published September 23, 2010 Credit Unions Online
Freddie Mac's Primary Mortgage Market Survey (PMMS) indicates average 30 year fixed rate mortgages remained at 4.37 percent, the same rate as one week ago. Last year at the same time, the average 30 year fixed rate was 5.04 percent. The 15 year fixed rate mortgage average remained the same as well, staying at 3.82 percent. Last year's 15 year fixed rate mortgage average was 4.51 percent.
"In its September 21st policy committee statement, the Federal Reserve indicated that the pace of recovery in output and employment has slowed in recent months. In addition, inflation was at levels somewhat below its comfort zone. The perception of slow growth and low inflation removed any upward pressure on fixed mortgage rates this week," said Frank Nothaft, vice president and chief economist, Freddie Mac.
Nothaft continues saying that "since 1975, fixed mortgage rates typically fall over the 12 months following the end of a recession; the one exception was the 1980 downturn. The National Bureau of Economic Research recently announced that the current recession ended in June 2009. Rates for 30-year fixed mortgages were 0.7 percentage points lower in June 2010, representing the largest decline during the first year of recovery over the last six recessions. With a weaker recovery, these rates fell by another 0.4 percentage points by September."
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