Interest rates remain status quo amid the turmoil in the markets. Freddie Mac said Thursday mortgage rates slid for the fourth straight week.
"The recent market turmoil has given the Fed pause; as was universally expected, the Fed stood pat this week but kept its options open for a rate increase in March. This week's housing releases confirmed the momentum of home sales going into 2016," Sean Becketti, chief economist for Freddie Mac said.
In December, the Federal Reserve raised its key interest rate and announced it planned more hikes in the coming months.
In a statement Wednesday it wrote:
"Given the economic outlook, the Committee decided to maintain the target range for the federal funds rate at 1/4 to 1/2 percent. The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation."
Greg McBride, Chief Financial Analyst at Bankrate.com released his 2016 Interest Rate Forecast this month. He said though the agency plans more hikes, it probably won't be as drastic as planned.
"The Fed is thinking they're going to do so 4 times. I think it's a little overly optimistic. I see more like two, maybe 3 interest rate increases this year," said McBride.
Click video above to hear what McBride says about mortgage rates in 2016.
- 30-year fixed-rate mortgage (FRM) averaged 3.79 percent with an average 0.6 point for the week ending January 28, 2016, down from last week when it averaged 3.81 percent. A year ago at this time, the 30-year FRM averaged 3.66 percent.
- 15-year FRM this week averaged 3.07 percent with an average 0.5 point, down from 3.10 percent last week. A year ago at this time, the 15-year FRM averaged 2.98 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.90 percent this week with an average 0.5 point, down from last week when it averaged 2.91 percent. A year ago, the 5-year ARM averaged 2.86 percent.
-- Source: Freddie Mac
