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Mortgage Rates Flat as Investors Await Stimulus News

Mortgage rates saw little change this week as investors await news from the Federal Open Markets Committee (FOMC) about a possible third round of quantitative easing.


According to Freddie Mac's ""Primary Mortgage Market Survey"":http://www.freddiemac.com/pmms/, the 30-year fixed-rate mortgage (FRM) averaged 3.55 percent (0.6 point) for the week ending September 13, no different from the week before and only slightly above its all-time low achieved earlier in the summer.

The 15-year FRM averaged 2.85 percent (0.6 point), slightly down from 2.86 percent in the previous survey.


The 30-year fixed average has stayed below 4.00 percent all but once this year, while the 15-year fixed average has been below 3.00 percent since the last week of May, Freddie Mac reported.

The 1-year adjustable-rate mortgage (ARM) also stayed the same this week, averaging 2.61 percent (0.4 point). The 5-year ARM average slid down to 2.72 percent (0.6) from 2.75 percent a week ago.

The results of ""Bankrate's"":http://www.bankrate.com/ weekly survey were a bit more mixed. The 30-year fixed averaged 3.81 percent, inching up from 3.79 percent previously. The average 15-year FRM did not change.

At the same time, the 5/1 ARM slid back, averaging 2.75 percent (from 2.76 percent the week before).

""Mortgage rates were little changed over the week as a better than expected report on the services sector offset a lousy employment report,"" Bankrate said in a release. ""But the weak jobs picture did increase the likelihood of further Fed stimulus, such as purchases of mortage-backed bonds that would drive mortgage rates down further.""

Fed chairman Ben Bernanke is expected to hold a press conference Thursday afternoon to announce the outcome of FOMC's policy meeting.

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.

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