Mortgage rates fell as investors purchased more 10-year Treasury bonds after the Federal Open Market Committee decided to leave short-term rates unchanged, according to Freddie Mac.
The 30-year fixed-rate mortgage averaged 3.42% for the week ending Sept. 29,
"Investors flocked to the safety of government bonds causing the 10-year Treasury yield to continue its descent following the FOMC's decision to leave rates unchanged. The 30-year fixed-rate mortgage responded by dropping 6 basis points — a 10-week low," said Sean Becketti, chief economist at Freddie Mac.
The 15-year fixed-rate mortgage averaged 2.72%, down from last week when it averaged 2.76%. A year ago at this time, it averaged 3.07%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.81%, up from last week when it averaged 2.8%, while a year ago it averaged 2.91%.
"The course of the economy is uncertain, yet consumers continue to be a bright spot. The September consumer confidence index is up 3% to 104.1, exceeding forecasts and reaching a new cycle high," Becketti added.
