Mortgage rates fall amid global uncertainty

July 10 01:11 2015

Mortgage rates took a step back from year-high levels this week as uncertainty in world financial markets continues to rankle investors. According to mortgage giant Freddie Mac, the rate on a 30-year fixed-rate mortgage dropped to 4.04%, down from 4.08% last week and 4.15% from a year ago. The rate on a 15-year fixed-rate mortgage fell to 3.20% from 3.24% last week.AP MORTGAGE RATES F USA CA

Concerns over world markets, driven by plunging stocks in China and uncertainty in Europe, have pushed investors to buy U.S. Treasury bonds, driving down interest rates across the board. “Overseas volatility is likely to persist for some time, providing some restraint on potential U.S. rate increases,” said Sean Becketti, chief economist at Freddie Mac.

He believes that the minutes of the June meeting of the Federal Open Market Committee suggest the Federal Reserve will proceed with caution in regards to raising short term interest rates. “As a result, mortgage rates may remain in the neighborhood of 4% for a while,” he said. The average rate on five-year adjustable-rate mortgages fell from 2.99% to 2.93%.

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