Average fixed mortgage rates declined following the Federal Reserve’s decision to defer a hike in the Federal funds rate, according to Freddie Mac.

The 30-year fixed-rate mortgage averaged 3.86% with an average 0.7 point for the week ending September 24, 2015, down from last week when it averaged 3.91%. A year ago at this time, the 30-year FRM averaged 4.2%. 

These low rates gave a big boost to mortgage applications this past week.

“Global growth concerns and lackluster inflation convinced the Fed to defer a hike in the Federal funds rate. In response, Treasury yields fell about 9 basis points over the week, with some larger day-to-day swings along the way,” said Sean Becketti, chief economist at Freddie Mac. “In response, the interest rate on 30-year fixed rate mortgages dropped by 5 basis points to 3.86%.

“Mortgage rates have remained below 4% for 9 consecutive weeks and have remained range-bound between 3.8 and 4.1% since May. These low mortgage rates have supported strong home sales, and 2015 is on pace to have the highest home sales total since 2007,” he said.

The 15-year FRM this week averaged 3.08% with an average 0.6 point, down from last week when it averaged 3.11%. A year ago at this time, the 15-year FRM averaged 3.36%. 

The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.91% this week with an average 0.5 point, down from last week when it averaged 2.92%. A year ago, the 5-year ARM averaged 3.08%.

The 1-year Treasury-indexed ARM averaged 2.53% this week with an average 0.2 point, down from last week when it averaged 2.56%. At this time last year, the 1-year ARM averaged 2.43%.