Mortgage Rate Stabilizes, Probability of a Rate Decrease
Photo courtesy of SocketSite
The mortgage interest rates actually dropped to a 9-month low at 4.45% a couple of weeks ago, as reported by local real estate news site, SocketSite:
“At the same time, the average rate for a 15-year fixed mortgage has been holding around 3.88 percent, which is down 48 basis points since mid-November but 26 basis points above its mark at the same time last year, while the average rate for a 5-year adjustable has inched up to 3.90 percent, which is 38 basis points above its mark at the same time last year and represents a slight inversion with the 15-year rate.”
According to Freddie Mac’s latest Mortgage Market Survey data:
Photo of a cyclist passing the Federal Reserve building in Washington, DC, U.S., courtesy of REUTERS/Chris Wattie
And while the Fed has said to expect for two more rate hikes in 2019, “to a range of 2.75 percent 3 percent,” according to Reuters, traders are still wagering against any more rate hikes over the next few months, with the probability of a hike holding at under 20 percent.