For the second consecutive week, fixed-rate mortgages declined, lowering borrowing costs and helping to alleviate some signs of softening in the housing market, according to Freddie Mac’s weekly mortgage market report.
The 30-year fixed-rate mortgage averaged 4.10 percent for the week ending Oct. 31, its lowest average since June.
The Federal Reserve announced this week after its monetary policy meeting that it would be keeping its $85 billion per month bond-buying program in place for now, which should help sustain low mortgage rates in the near future, says Frank Nothaft, Freddie Mac’s chief economist. The Fed also noted an improvement in economic activity but a slowing in the housing market recovery in recent months as unemployment remains high, Nothaft notes.
Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 31:
- 30-year fixed-rate mortgages: averaged 4.10 percent, with an average 0.7 point, dropping from last week’s 4.13 percent average. Last year at this time, 30-year rates averaged 3.39 percent.
- 15-year fixed-rate mortgages: averaged 3.20 percent, with an average 0.7 point, dropping from last week’s 3.24 percent average. Last year at this time, 15-year rates averaged 2.70 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 2.96 percent, with an average 0.4, dropping from last week’s 3 percent average. A year ago, 5-year ARMs averaged 2.74 percent.
- 1-year ARMs: averaged 2.64 percent, with an average 0.4 point, rising from last week’s 2.60 percent average. A year ago, 1-year ARMs averaged 2.58 percent.
—From REALTOR® Magazine Daily News