FHFA: Average mortgage rate declines during August

The FHFA reported that the average mortgage rates during August were down.According to the Federal Housing Finance Agency, the average interest rate of mortgages sold to government-sponsored enterprises fell during August, representing the fifth-straight month of declines.Overall, the interest rate averaged 4.56 percent during the month, down 1 basis point from July. In March, the rate averaged 4.84 percent, and has declined each month since.Frank Nothaft, Freddie Mac's chief economist and vice president, explained that the efforts of the Federal Reserve have helped pushed rates to lows not seen in a half-century. However, the Fed has offered to help even more, planning to purchase up to $400 billion in long-term Treasurys and new agency mortgage-backed securities beginning October 1. The Reserve believes doing so will allow rates to main at these historic lows.According to the FHFA report, the average rate for a 30-year fixed loan was 4.63 percent during August, down 6 basis points from July. For all fixed- and adjustable-rate mortgages, mortgages sold to GSEs was 4.52 percent, which fell 3 basis points from the previous months.With home loan rates remaining historically low, more Houston properties may be purchased in upcoming months, continuing the region's recent successful real estate run.Courtesy of 2M Realty News

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