WASHINGTON – Average U.S. rates on fixed mortgages fell last week to their lowest point in two months. The decline follows the Federal Reserves decision last week to hold off slowing its monthly bond purchases.
Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan dropped to 4.32 percent from 4.50 percent the previous week. The average on the 15-year fixed loan declined to 3.37 percent from 3.54 percent.
Both are the lowest averages since July 25.
Mortgage rates are nearly a full percentage point higher than in May, when the Fed first signaled it might slow its $85 billion a month in bond buys. But last week, the Fed kept the pace steady after lowering its outlook for economic growth.
The bond purchases are intended to lower long-term interest rates, including mortgage rates.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday each week.