On the heels of the Federal Reserve’s most recent interest rate hike, mortgage rate increases took a break this week, according to Bankrate.com’s weekly national survey of large lenders.
Mortgage rates had been steadily climbing since the week of June 15 and appeared to be heading toward the 7 percent mark. But the national average for a standard 30-year, fixed-rate loan slid instead to 6.91 percent from 6.93 percent.
The Fed raised the federal funds rate last week for the 17th straight time, but the financial community largely interpreted Fed Chairman Ben Bernanke’s accompanying statement as a signal they may put the breaks on further increases — which triggered the dip in mortgage rates.
The average 30-year fixed rate for jumbo mortgages edged past 7 percent the week of June 29 and remained above that threshold this week at 7.06 percent. The average 15-year fixed rate mortgage — popular for refinancing — dipped to 6.54 percent from last week’s 6.57 percent.
But homebuyers can’t relax yet. According to Bankrate.com’s weekly report, continued worries over inflation or an August Fed increases could push rates up again.
