Mortgage Rates Hold Steady Near Record Lows
WASHINGTON – Mortgage rates were almost flat this week, remaining near record lows, according to Freddie Mac.
The average for the benchmark 30-year, fixed-rate loan inched up to just 4.24% this week, from 4.23% last week; while the average for the 15-year mortgage declined to 3.63% from 3.66%.
The average for the five-year ARM also declined slightly, to 3.39%, from 3.41%.
Rates have been at or near historic lows since April. Nervous investors are buying up ultra-safe Treasury bonds. Bond buying picked up in recent weeks as investors prepared for the Federal Reserve's announcement yesterday of a plan to buy billions of dollars in Treasury bonds. The goal is to spur consumer spending and investment in stocks.
The extra demand means investors must accept lower yields on Treasury bonds. Mortgage rates tend to track Treasury yields.