The 30-year fixed mortgage rate fell to its lowest level since just after the presidential election. The rate for the 15-year fixed rose two basis points and the 5/1 ARM was unchanged, according to a NerdWallet survey of daily mortgage rates published by national lenders Thursday morning.
The last time the 30-year fixed was lower than 3.88% was Nov. 9, 2016, the day after Election Day. And yesterday, the 15-year fixed hit its lowest level since Nov. 10.
The lack of upward pressure on interest rates was underscored this week by comments members of the Federal Reserve’s committee that sets short-term rates. In a speech Tuesday before the Economic Club in New York City, Fed Governor Lael Brainard said that the central bank has undershot its 2% inflation goal for more than a year. “My own view is that we should be cautious about tightening policy further until we are confident inflation is on track to achieve our target,” she said.
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said Tuesday in a Q&A session at the University of Minnesota: “Maybe our rate hikes are actually doing real harm to the economy. It’s very possible that our rate hikes over the past 18 months are leading to slower job growth, leading to more people on the sidelines, leading to lower wage growth, and leading to lower inflation and inflation expectations.”
The Fed’s rate-setting committee meets Sept. 19 and 20, with at least two of those members having already expressed reluctance to raise short-term rates. The CME Group’s FedWatch Tool forecasts that there’s a zero chance of a rate hike in the September meeting, and roughly a 36% chance of an increase in its December meeting.
MORTGAGE RATES TODAY, THURSDAY, SEPT. 7:
NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.
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