WASHINGTON – Mortgage rates held steady this week near their lowest levels in almost three decades as the Federal Reserve said it would keep rates near record lows to help the economy recover.
The average for the benchmark 30-year, fixed-rate loan was 4.98% this week, down from 4.99% last week; while the average for the 15-year, fixed-rate mortgage slipped to 4.39%, from 4.40%, according to Freddie Mac.
ARM rates also tipped slightly lower, with the average for the five-year ARM dipping to 4.25%, from 4.27%; and the average for the one-year ARM moving to 4.29%, from 4.32% last week.
"Mortgage rates held steady this week ahead of the Federal Reserve's policy committee meetings," said Frank Nothaft, chief economist for Freddie Mac. "The Fed announced on Jan. 27 that economic activity has continued to strengthen. It also noted that with substantial resource slack continuing to restrain cost pressures and with longer-term inflation expectations stable, inflation is likely to be subdued for some time."
