Fixed-Rates Dip for Second Consecutive Week, Hot Lowest Levels Since June
Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed-rate mortgages (FRMs) declining for the second consecutive week amid recent data showing softening in the housing market, hitting their lowest levels since June. The 30-year FRM averaged 4.10 percent with an average 0.7 point for the week ending Oct. 31, 2013, down from last week when it averaged 4.13 percent. A year ago at this time, the 30-year FRM averaged 3.39 percent. Also this week, the 15-year FRM averaged 3.20 percent with an average 0.7 point, down from last week when it averaged 3.24 percent. A year ago at this time, the 15-year FRM averaged 2.70 percent. "Fixed mortgage rates eased further leading up to the Federal Reserve's (Fed) October 30th monetary policyannouncement," said Frank Nothaft, vice president and chief economist, Freddie Mac. "The Fed saw improvement in economic activity and labor market conditions since it began its asset purchase program, but noted the recovery in the housing market slowed somewhat in recent months and unemployment remains elevated. As a result, there was no policy change which should help sustain low mortgage rates in the near future." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent this week with an average 0.4 point, down from last week when it averaged three percent. A year ago, the five-year ARM averaged 2.74 percent. The one-year Treasury-indexed ARM averaged 2.64 percent this week with an average 0.4 point, up from last week when it averaged 2.60 percent. At this time last year, the one-year ARM averaged 2.58 percent.