Another round of record-breaking interest rates convinced more consumers to inquire about a mortgage this week. One key barometer points to even lower mortgage rates.
It was a new low for the average 30-year fixed-rate, which was 4.27 percent in Freddie Mac’s survey of mortgage lenders for the week ended Thursday. The 30-year fell from 4.32 percent last week.
Freddie Chief Economist Frank Nothaft credited tame inflation for the new record.
Jumbo mortgage rates improved compared to interest rates on loans with conforming loan amounts based on the Mortech-Mortgage Daily Mortgage Market Index report for the week ended Oct. 6.
The yield on the 10-year Treasury note, a benchmark for mortgage rates, points towards lower interest rates.
According to data reported by the U.S. Department of the Treasury, the 10-year yield closed at 2.41 percent today — 0.12 percent below last Thursday’s close. Given the smaller 0.05 percent decline in the 30-year mortgage over the same period, the 30-year mortgage still has a little further to fall by next week’s reports given no big market events.
An 0.08 percent weekly decline in the one-year Treasury-indexed ARM left it averaging 3.40 percent in the Freddie Mac survey, lower than 4.53 percent a year prior.
During the week ended Oct. 1, when the 30-year rate declined and the one-year ARM was higher, ARM share increased to 6.1 percent from 6.0 percent seven days earlier based on the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
Mortgage activity rose 5 percent this week based on the Mortgage Market Index, which increased to 297 from 284. The increase in the index was helped by refinance activity, which accounted for 59 percent of this week’s activity versus 58 percent last week.
The average loan amount in the Mortech-Mortgage Daily report climbed to $214,657 from last week’s $212,512. Washington, D.C., maintained its stronghold on the highest average loan amount: $309,419. South Dakota’s $140,187 was lowest.