Mortgage Rates Hold Steady

McLEAN, Va. – Long-term mortgage rates changed little this week after the Federal Reserve cut the target for its short-term Fed Funds rate, according to Freddie Mac. The average for a 30-year, fixed-rate loan rose slightly to 6.34% this week, from 6.31% last week; while the average for a 15-year, fixed-rate mortgage moved to 5.98%, from 5.97% last week. ARM rates also were steady, with the average for a one-year ARM inching down to 5.65%, from 5.66% last week; and the average for a five-year ARM moving to 6.21%, from 6.17%. "In addition to bringing down short-term interest rates, the (Fed) cut should also dissipate some of the volatility in short-term interest rates we observed earlier," said Frank Nothaft, chief economist for Freddie Mac. "Mortgage rates were largely unchanged in the previous week, with long-term rates lingering at lower levels not seen since May," he said.