Mortgage Daily Logo

Mortgage Rates Sink to Lowest Level in Over Year

Rates

Volatility in global markets helped drag down long-term fixed rates on home loans to the lowest level in more than a year.

In Freddie Mac’s Primary Mortgage Market Survey for the week ended Oct. 16, thirty-year fixed rates averaged 3.97 percent.

That was the lowest average for 30-year rates since the week ended June 20, 2013, when the average was 3.93 percent.

Freddie Mac Chief Economist Frank Nothaft explained that mortgage rates slid “amidst continued investor skepticism regarding the precarious economic situation in Europe.”

Thirty-year fixed rates averaged 4.12 percent last week, while the average was 4.28 percent this week last year.

Fixed rates are unlikely to be much different in Freddie’s next report based on this week’s Treasury market activity.

Data from the Treasury Department indicate that the 10-year Treasury yield, which is tracked by mortgage rates, averaged 2.18 percent during the days that Freddie’s conducted its survey. The 10-year yield closed at 2.17 percent Thursday.

At Bankrate.com, 45 percent of the panelists surveyed for the week Oct. 16 to Oct. 22 predicted rates will decline at least 3 basis points over the next week. The rest were evenly split about whether rates will increase or won’t move.

In the U.S. Mortgage Market Index report from LoanSifter/Optimal Blue and Mortgage Daily for the week ended Oct. 10, rates on jumbo mortgages were 12 BPS better than conforming rates. The jumbo-conforming spread was the same as in the previous report.

The average 15-year fixed rate was 3.18 percent in Freddie’s survey, tumbling from 3.30 percent in the week ended Oct. 9. Fifteen-year rates were 79 basis points less than 30-year rates, not as good as the 82-basis-point spread in the last report.

Freddie reported five-year, Treasury-indexed, hybrid, adjustable-rate mortgages at 2.92 percent, dropping from the 3.05 percent average seven days earlier.

At 2.38 percent, one-year Treasury-indexed ARMs were 4 BPS better than the average a week ago, Freddie reported. One-year ARMs averaged 2.63 percent in the week ended Oct. 17, 2014.

The yield on the one-year Treasury note, which determines changes to rates and payments on one-year ARMs, closed Thursday at 0.10 percent, unchanged over the past week.

Another ARM index, the six-month London Interbank Offered Rate, was 0.32 percent as of Wednesday, easing from 0.33 percent seven days earlier, according to Bankrate.com. It was the first time the index moved since June.

ARM share in the latest Mortgage Market Index report was 12.3 percent, the same as a week earlier.

Related Posts

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Up 92 BPS From Year Ago

Over the past year, weekly fixed interest rates on single-family loans have soared 92 basis points. But little change was reported from last week, and more of the same is expected. On conventional loans utilized to finance a home purchase with amounts up to the...

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rate Forecasts Have Little Change Ahead

Thirty-year mortgage rates moved lower this past week and this past month. Short- and long-term forecasts have little movement ahead for mortgage rates. Ellie Mae Inc.'s Origination Insight Report | September 2018 indicated that average 30-year note rates on...

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Soar, Could Sink in Next Report

An expected surge in mortgage rates came to fruition this week. The latest forecast has fixed rates tumbling in next week's report. A new index for adjustable-rate mortgages moved lower. A stunning 19-basis-point surge from the preceding week left average 30-year...

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Dip, But Likely to Skyrocket

Mortgage rates retreated a modest amount just one week after climbing to a seven-year high. The next rate report, however, is likely to reflect significant escalation. Prospective 30-year borrowers using the LendingTree network during September were offered an average...

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Little Changed, More of Same Ahead

Over the past week, there was little change in interest rates on home loans. During the next week, more of the same is likely. Recently rising rates have helped the Federal Home Loan Banks' earnings. Conventional mortgages with conforming loan amounts used to finance...

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...

Newsletter

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