McLEAN, Va. – Home loan rates declined last week, as investors speculated that the Federal Reserve will hold the benchmark short-term rate steady.
The average for the 30-year, fixed-rate loan dipped last week to 6.26%, from 6.37% the week before; and the average for the 15-year, fixed-rate loan slipped to 5.78%, from 5.91% the prior week.
ARM rates also eased, with the average for the one-year ARM falling to 5.10%, from 5.17%; and the average for the five-year ARM dipping to 5.80%, from 5.82% the week before.
“Mortgage rates fell this week amid market speculation that the Federal Reserve may not raise the overnight bank-lending rate this year after all,” said Frank Nothaft, chief economist for Freddie Mac. “Some of the factors motivating the change in market perceptions this week included retail sales for June rising at the slowest pace since February and consumer sentiment in July holding at low levels not seen since 1980.”
