WASHINGTON (AP) – Average long-term U.S. mortgage rates declined this week following the Federal Reserve’s decision to keep interest rates at record lows for now.
Mortgage giant Freddie Mac says the average rate on a 30-year fixed-rate mortgage fell to 3.86 percent from 3.91 percent a week earlier. The rate on 15-year fixed-rate mortgages eased to 3.08 percent from 3.11 percent.
Rates have stayed below 4 percent for nine straight weeks.
Fed policymakers announced last Thursday they had decided to keep a key interest rate close to zero in the face of threats from a weak global economy, persistently low inflation and unstable financial markets. But Fed Chair Janet Yellen said a rate hike was still likely this year. A rate hike by the Fed could bring higher rates for home loans.