For the fifth straight month, information compiled by Freddie Mac shows that mortgage rates continued to fall. As of April 2019, the 30-year FRM – Commitment rate, fell by thirteen basis points to 4.14 percent from 4.27 percent in March. The cycle peak was 4.87 percent in November.
The Federal Housing Finance Agency reported that the contract rate for newly-built homes, also declined by 20 basis points to 4.33 percent in April. Mortgage rates on purchases of newly built homes (MIRS) declined by 21 basis points over the month of April to 4.15 percent from 4.36 percent in March.
According to the May 2019 Federal Open Market Committee meeting statement, the Fed is likely to continue a “patient approach” stance to rate setting for the next several months. As expected, it kept the target for the federal funds rate at its setting of 2.25-2.50 percent. The post-meeting statement characterized growth as solid but noted that broad inflation measures had declined and were running below the FOMC’s 2% inflation target.
At the end of April, the 10-year Treasury rate, is slightly up 2.50%. However, rate has declined to 2.27% by the end of May 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 3.99% at the end of May compared to 4.20% at the end of April. At the end of 2018, the average 30-Year Fixed market rate was 4.64%.