WASHINGTON Fixed mortgage rates reversed course this week and headed back down, after rising sharply last week, according to Freddie Mac.
The average for the 30-year, fixed-rate mortgage slipped to 3.54% this week from 3.63% last week; while the average for the 15-year, fixed-rate loan fell to 2.72% from 2.79%.
Frank Nothaft, chief economist for Freddie Mac, said he expects 30-year rates to remain below 4% for the rest of 2013 an extraordinarily low level by historic standards. He noted the Federal Reserve this week cut the upper end of its inflation range forecast.
“Low and stable inflation is placing downward pressure on fixed mortgage rates,” Nothaft said. “Annual growth in the consumer price index has remained at or below 2% for the past four months, and for the producer price index even lower.”
ARM rates held steady, with the average for the five-year ARM unchanged at 2.61%; and the average for the one-year ARM slipping to 2.63% from 2.64% last week.
