Mortgage Rates Steady as Fed Holds

McLEAN, Va. – Mortgage rates remained steady for the third week in the last four, reflecting further evidence that slower economic growth will help keep inflation in check, according to Freddie Mac. The average for the benchmark 30-year, fixed-rate loan slipped a single basis point to 6.15% this week; while the average for the 15-year, fixed-rate mortgage was unchanged at 5.87%. The Federal Reserve on Wednesday decided to keep the overnight Fed Funds rate unchanged as Fed officials continued to watch to make sure that the economic slowdown that is occurring will be enough to lower inflation pressures. Short-term rates rose slightly, with the average for the five-year ARM moving from 5.87% last week to 5.89% this week; and the average for the one-year ARM rising to 5.48%, from 5.42%.