Excerpted from Dayton Newletter, March 28,2016 article by Andrew Harper “After weeks of increases, U.S. mortgage rates take a dip”
Mortgage rates have stopped their three week climb and reversed course. The recent dip stems from some uncertain economic data. According to Freddie Mac The average 30-year fixed mortgage averaged 3.71 percent for the week ending March 24, down from 3.73 percent the previous week.
The 30-year rate remains near the 2015 percent, making the spring home buying season appear strong. A year ago, mortgage rates stood at 3.69 percent.
“The Federal Reserve’s decision last week to maintain the current level of the Federal funds rate combined with the reduction in their forecast for growth triggered a three-basis point drop in the 10-year Treasury yield,” said Sean Becketti, chief economist for Freddie Mac.
“As a consequence, the 30-year mortgage rate declined 2 basis points to 3.71 percent.” As usually any information about mortgage rates always come with a big cavate. Becketti added that the Federal Funds rate may see a hike come June.