Interest rates have been hovering around all-time lows for the past many quarters. Recently, the Federal Reserve raised the interest rates slightly. Federal Reserve had also indicated that rates could be increased in future as well but the decision on further interest rate hike would be taken only after considering the factors impacting economy.
The average interest rate on 30-year fixed mortgage has declined from 4.01 percent to 3.62 percent since the start of this year. Freddie Mac said that interest rates have touched a yearly low. Long term mortgage rates are quite close to their all-time low. Economists have reduced their estimates for interest rates in year 2016 after considering macro-economic factors and indications from the Federal Reserve. In her comments, Federal Reserve Chair Janet Yellen had advocated for gradual interest rate hike in future but situation has changed since the last Federal Reserve meeting.