For the ninth straight month, information compiled by Freddie Mac shows that mortgage rates continued to decline but at a slow pace. As of September 2019, the 30-year FRM – Commitment rate, fell by one basis points to 3.61 percent from 3.62 percent in August. The cycle peak was 4.87 percent in November.
According to the September 2019 Federal Open Market Committee meeting statement, as expected, the Fed voted for a quarter-point cut in target federal funds rate to a range of 1.75-2.00 percent. This move was a result of growing global uncertainty for the economic outlook as well as muted inflation pressures. Outlook expressed by FOMC members left the option open for additional accommodation, while indicating that policy decisions would be approached on a meeting-by-meeting basis, taking into account incoming data and other developments bearing on the outlook, including risks related to trade policy uncertainty and other global issues.
At the end of September, the 10-year Treasury rate, was at 1.67 percent. It was at 1.50 percent at the end of August. Although slightly up compared to a few weeks ago, the lower rate 10-year Treasury rate has contributed to lower mortgage interest rates in the last few weeks compared to earlier this year. The average 30-Year Fixed market rate, according to Freddie Mac, was at 3.64 percent at the end of September compared to 3.58 percent at the end of August. At the beginning of 2019, the average 30-Year Fixed market rate was 4.51 percent.