Freddie Mac: Fixed Mortgage Rates Drop To Lowest Level Since June 2013

Posted by Patrick Barnard on October 16, 2014 No Comments
Categories : Residential Mortgage

Fixed mortgage rates this week dipped to the lowest levels since June 2013, according to Freddie Mac's Primary Mortgage Market Survey.

The new lows for the year came as 10-year bond yields briefly dipped below 2%.

For the week ended Oct. 16, the average rate for a 30-year fixed-rate mortgage (FRM) was 3.97%, down from 4.12% the previous week. A year ago at this time, the 30-year FRM averaged 4.28%.

The average rate for a 15-year FRM was 3.18%, down from 3.30% the previous week. A year ago at this time, the 15-year FRM averaged 3.33%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.92%, down from 3.05% the week prior. A year ago, the five-year ARM averaged 3.07%.

The average rate for a one-year Treasury-indexed ARM was 2.38%, down from 2.42%. At this time last year, the one-year ARM averaged 2.63%.

‘Mortgage rates were down sharply following the decline in the 10-year Treasury yield for the second straight week,’ explains Frank Nothaft, vice president and chief economist for Freddie Mac, in a release. ‘Rates are at their lowest levels since June 2013 amidst continued investor skepticism regarding the precarious economic situation in Europe.’

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