Mortgage interest rates were creeping eerily close to 5% this past month, causing concerns about home affordability. But since the Fed decided it would not start tapering its asset purchases, timid borrowers are getting a second chance at lower rates, CNNMoney reports.

But now that the Fed has said it will continue to purchase the bonds, rates will likely retrace some of those gains, said Keith Gumbinger of mortgage information provider HSH.com.

"Now, we do have some space for rates to fall," he said. "I don't expect a plummet, just a drop of 0.1 percentage points or so over the next week or two."

About the Author

Most Popular Articles

Freddie Mac: Mortgage rates reverse course from last week’s low

This week, the average U.S. fixed rate for a 30-year mortgage jumped to 3.69%. That’s still more than a percentage point lower than the 4.85% of the year-earlier week.

Oct 17, 2019 By

Latest Articles

Airbnb doubles its loss in Q1

Short-term rental site Airbnb doubled down on its loss from the first quarter of 2018 in the first quarter of 2019, but it the company appears more ready for growth than ever. Why? Because the loss is due to an increase in marketing spending.

Oct 18, 2019 By