Mortgage rates decreased slightly this week, averaging 3.48 percent for a 30-year, fixed-rate loan. The rate was 3.50 percent last week.
Redfin reports that Federal Open Market Committee (FOMC) has decided to keep the Federal funds rate unchanged, and that the FOMC probably won’t raise the rate until December, after the presidential election is over.
The good news is that the housing recovery is no longer as dependent on low rates.
“Housing is now in a hard won position,” said Redfin chief economist Nela Richardson. “Its growth path is no longer so dependent on the Fed’s policy of keeping short-term rates extremely low, especially since the industry has a portfolio of mortgage securities that can suppress mortgage rate increases.”
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