Mortgage Daily Logo
mortgage news from industry experts

30-Year Mortgage Rate Dips, Could Ease Further

Fixed interest rates on home loans were little moved over the past week but are poised for a potential decline in the next report.

Thirty-year fixed rates averaged 4.19 percent in Freddie Mac’s Primary Mortgage Market Survey for the week ended Oct. 2.

The 30-year average dipped 1 basis point compared to the prior week and was 3 BPS lower than in the same week last year.

The Federal Housing Finance Agency reported that conforming 30-year fixed rates averaged 4.33 percent in August, 1 basis point less than in July.

Fixed rates are likely to be around 4 BPS lower in next week’s report based on this week’s Treasury market activity.

Data from the Department of the Treasury indicated that the 10-year Treasury yield — a benchmark for fixed mortgage rates — averaged 2.48 percent during Freddie’s survey period and closed at 2.44 percent Thursday.

Half of the panelists surveyed by for the week Oct. 2 to Oct. 8 predicted that rates will fall at least 3 BPS over the next week. No change was forecasted by 42 percent, and just 8 percent predicted an increase.

Interest rates on jumbo mortgages were 4 basis points less than on conforming loans in the U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily for the week ended Sept. 26, about the same as the prior week.

Freddie said that 15-year fixed rates averaged 3.36 percent, the same as in the week ended Sept. 25. The spread between 15- and 30-year mortgages was 83 BPS, not quite as good as the 84-basis-point spread one week earlier.

At 3.06 percent — five-year, Treasury-indexed, hybrid, adjustable-rate mortgages averaged 2 BPS less than in Freddie’s last report.

Freddie reported the average one-year ARM at 2.42 percent, a basis point better than in the last report. The one-year ARM rate has tumbled 22 BPS from the week ended Oct. 3, 2013.

One-year ARMs adjust with the yield one the one-year Treasury, which the Treasury Department reported at 0.10 percent Thursday, unchanged from seven days earlier.

There’s been no change in the six-month London Interbank Offered Rate — or LIBOR — since June, leaving the index at 0.33 percent as of Wednesday, reported.

ARM share was 11.9 percent in the latest Mortgage Market Index report, thinning from 12.0 percent in the previous report.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts