Average U.S. mortgage rates fell to the lowest level since July this week, in the wake of the announcement from the Federal Reserve that it will maintain the bond buying stimulus program, according to Freddie Mac.
The average rate for a 30-year fixed mortgage was 4.32 percent for the week ending Sept. 26, dropping from 4.50 percent the week before. The rate was the lowest level since the week ending July 25. This time last year, the 30-year fixed-rate mortgage averaged 3.40 percent.
"These low rates should somewhat offset the house price gains seen the last number of months and keep housing affordability elevated," Frank Nothaft, vice president and chief economist, Freddie Mac, said in the release.
The increases in home values have also increased homeowner wealth, Freddie Mac reports.
"Homeowners experienced an aggregate $1.4 trillion increase in equity in their homes over the first half of this year which contributed to the overall $4.2 trillion gain in household net worth," Mr. Nothaft said in the release.
The 15-year fixed-rate mortgage averaged 3.37 percent, down from 3.54 percent last week. At this time last year, it averaged 2.73 percent.
One-year treasury-indexed ARM averaged 2.63 percent, dropping from 2.65 percent the prior week.