The average rate for a 30-year fixed-rate mortgage (FRM) hit 3.92% this week, down from 4.13% the previous week to reach its lowest level since the week of June 6, 2013, Freddie Mac reports.
The average rate for a 15-year FRM was 3.08%, down from 3.18% the week prior. A year ago at this time, the 15-year FRM averaged 3.24%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.91%, down from 2.92% the previous week. A year ago, the five-year ARM averaged 3.00%.
The average rate for a one-year Treasury-indexed ARM was 2.41%, down from 2.38%. At this time last year, the one-year ARM averaged 2.60%.
‘Fixed mortgage rates continued to fall this week after the yield on 10-year Treasuries dropped to their lowest point of the year,’ reports Frank Nothaft, vice president and chief economist, Freddie Mac, in a release. ‘Existing-home sales beat expectations in September, clocking in at an annual rate of 5.17 million units, up 2.4 percent from August. Housing starts were up 6.3 percent in September adding a seasonally adjusted annual rate of 1.017 million units. Building permits rose 1.5 percent to a seasonally adjusted annual rate of 1.018 million units in September.’