Eye On Housing 30-Year Mortgage Rate Continues to Decline
For the fifth straight month, information compiled by Freddie Mac shows that mortgage rates continued to fall. As of May 2019, the 30-year FRM – Commitment rate, fell by seven basis points to 4.07 percent from 4.14 percent in April. The cycle peak was 4.87 percent in November.
According to the June 2019 Federal Open Market Committee meeting statement, the Fed made no change to the interest rate, as expected. It kept the target for the federal funds rate at its setting of 2.25-2.50 percent. The post-meeting statement emphasized the Committee will closely monitor risks and other economic developments and is prepared to adjust policy as appropriate to sustain the expansion and support a rise of inflation to the 2 percent target.
At the end of May, the 10-year Treasury rate, is down to 2.14 percent from April. The rate has declined to 2.02 percent by the end of June which has contributed to a decline in the mortgage interest rates in the last few weeks. The average 30-Year Fixed market rate, according to Freddie Mac, was at 3.73 percent at the end of June compared to 3.99 percent at the end of May. At the end of 2018, the average 30-Year Fixed market rate was 4.64 percent.