30-year fixed-rate mortgages fall to 6.35 percent on 100 Mortgages

30-year fixed-rate mortgages had been rising for five months in a row, but now there is a decline, the Federal Reserve has said that this is a good signal and it has eased worries of an imminent rate increase.

Freddie Mac had reported that 30-year fixed-rate mortgages were around 6.35 percent this week; this was down from 6.45 on the week before.

This recent decline has now pushed the rate to its lowest in three weeks, however it still remained above 6 percent, which is where it has stayed since May 29.

A meeting had been held on June 24-25 over interest rates, the central bank had brought an end to the aggressive rate-cutting campaign, they said that the risk of inflation has now increased.

In a recent statement from the Federal Reserve, there was nothing to hint that rates would start rising any time soon.

There are many private economists who believe that the Fed will keep the key short-term rates it controls much the same for the rest of the year at least however; Nothaft has said that the federal funds futures market, where investors make bets on when the Federal Reserve will make any such changes to rates show that there could be an increase later this year.

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