Mortgage Rates Plummet to Four-Month Low of 4.13 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates hitting their lowest levels since this summer, as the 30-year fixed-rate mortgage (FRM) averaged 4.13 percent with an average 0.8 point for the week ending Oct. 24, 2013, down from last week when it averaged 4.28 percent. A year ago at this time, the 30-year FRM averaged 3.41 percent. The 15-year FRM this week averaged 3.24 percent with an average 0.6 point, down from last week when it averaged 3.33 percent. A year ago at this time, the 15-year FRM averaged 2.72 percent.  "Mortgage rates slid this week as the partial government shutdown led to market speculation that the Federal Reserve will not alter its bond purchases this year," said Frank Nothaft, vice president and chief economist, Freddie Mac. "The weak employment report for September added to this expectation. The economy added just 148,000 jobs, which was below the market consensus forecast and less than the 193,000 jobs increase in August." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged three percent this week with an average 0.4 point, down from last week when it averaged 3.07 percent. A year ago, the five-year ARM averaged 2.75 percent. The one-year Treasury-indexed ARM averaged 2.60 percent this week with an average 0.5 point, down from last week when it averaged 2.63 percent. At this time last year, the one-year ARM averaged 2.59 percent.