U.S. long-term mortgage rates fell this week, following a sharp rise the week before, making September the most volatile month for the key 30-year loan since March.
Mortgage rates have been running near historic lows, spurring prospective homebuyers, amid an uncertain economic outlook. Mortgage buyer Freddie Mac says the average rate on the 30-year, fixed-rate mortgage dropped to 3.64% from 3.73% last week. By contrast, the average rate stood at 4.72% a year ago.
A sharply divided Federal Reserve last week cut its benchmark short-term interest rate for a second time this year but declined to signal that further cuts are likely in 2019. The Fed rate influences many consumer and business loans.
The average rate for 15-year, fixed-rate home loans declined this week to 3.16% from 3.21% last week.