In December, when the Federal Reserve raised rates for the first time in nearly a decade, many would-be homebuyers assumed it meant the beginning of the end for record-low mortgage rates.
“This is evidence that the Federal Reserve isn’t the sole determinant of U.S. mortgage rates,” said Mark Hamrick, senior economic analyst at Bankrate.
The 30-year mortgage rate fell to 3.79%, the fourth straight week of declines, according to Freddie Mac. A year ago, the rate averaged 3.66%.
The rate on a 15-year fixed mortgage also dropped to 3.07%.
On Wednesday, following weeks of volatility on Wall Street and global markets, the central bank left the benchmark rate unchanged. The rate-setting committee will meet again in March.
While the central bank doesn’t control mortgage rates, a higher Federal Funds rate makes it more expensive for banks to borrow money, which can ultimately be passed on to consumers taking out loans.