Freddie Mac has released the results of its Primary Mortgage Market Survey for the week ending Oct. 3, showing average fixed mortgage rates falling for the third consecutive week.
An average 30-year fixed-rate mortgage is at its lowest level since the week ending June 20, amid ‘the onset of the federal government shutdown and declining consumer confidence,’ according to Frank Nothaft, vice president and chief economist for Freddie Mac.
A 30-year fixed-rate mortgage (FRM) averaged 4.22%, with an average 0.7 point for the week – down from last week's 4.32%. A year ago at this time, a 30-year FRM averaged 3.36%.
A 15-year FRM averaged 3.29%, with an average 0.7 point – down from last week when it averaged 3.37%. At this time last year, a 15-year FRM averaged 2.69%.
A five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.03%, with an average 0.6 point – down from last week's 3.07% average. A year ago at this time, a five-year ARM averaged 2.72%.
A one-year Treasury-indexed ARM averaged 2.63%, with an average 0.4 point, and was unchanged from last week. At this time last year, the one-year ARM averaged 2.57%.
"Consumer sentiment fell for the second month in a row in September to its lowest reading since April, according to the University of Michigan," Nothaft comments. "Moreover, a recent Bloomberg survey of professional forecasters suggests that a partial federal shutdown lasting one week would shave 0.1 percentage points off of GDP growth in the fourth quarter and even more if the shutdown lasts longer.’