Skip to main content

Low and Stable Mortgage Rates Remain as QE Begins Wind Down

Oct 08, 2014

Rates on the most popular types of mortgages declined for a second consecutive week according to's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages (FRMs) fell by five basis points (0.05 percent) to 4.19 percent. Conforming 5/1 Hybrid ARM rates decreased by one basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.22 percent.

"The latest economic data suggest that the economy is performing well, although perhaps with not as much strength as we saw in the second quarter of 2014," said Keith Gumbinger, vice president of "Despite the good news, stock markets have been wobbly, and investors continue to seek reassuring places to park cash, so bond yields and mortgage rates have declined a bit in recent days."

After the second quarter managed a 4.6 percent rate of growth, indications are that we'll likely see a deceleration to a rate in the low-to-mid three percent range for the third quarter. That's still a healthy clip, and with hiring up and unemployment declining, the prospects for a continuing solid economic pace are improving.

"Firm growth is often accompanied by rising inflation and increases in interest rates, but at the moment, price pressures aren't a concern," said Gumbinger. "We also have the Federal Reserve working to keep mortgage rates low for at least a while yet, but as their Quantitative Easing (QE) program comes to a close at month's end, we expect to see rates remain low but become somewhat more volatile. For now, low and stable mortgage rates remain in place."

Average mortgage rates and points for conforming residential mortgages for the week ending Oct. 7, according to

Conforming 30-year fixed-rate mortgage
verage rate: 4.19 percent
Average points: 0.16

Conforming 5/1-year adjustable-rate mortgage
Average rate: 3.22 percent
Average points: 0.12

Average mortgage rates and points for conforming residential mortgages for the previous week ending Sept. 30 were, according to

Conforming 30-year fixed-rate mortgage
Average rate: 4.24 percent
Average points: 0.14

Conforming 5/1-year adjustable-rate mortgage
Average rate: 3.23 percent
Average points: 0.08

About the author
Oct 08, 2014
Fannie Mae Implements Notice Of Potential Defect Process To Address Loan Repurchase Risks

Faced with market challenges, Fannie Mae reintroduces a Notice of Potential Defect, allowing lenders a grace period to rectify significant loan issues before repurchase requests, amid calls for broader industry reform.

Feb 29, 2024
Rocket Pro Originate Mortgage Platform To Close; Shifts Focus To Mortgage Brokers

Rocket Pro Originate, a platform serving real estate agents and financial professionals, announces closure.

Feb 28, 2024
United Wholesale Mortgage Reports Fourth Quarter Loss Of $461 Million, But Remains Bullish For 2024

UWM Chairman and CEO Mat Ishbia optimistic despite financial setback, cites operational profitability and broker dominance.

Feb 28, 2024
Condo Prices, Sales Falling In Florida

New regulations and rising insurance costs hold back buyers in six major metros.

Feb 26, 2024
Buyer Beware

Unpriced climate risk the housing market’s bubble in the bloodstream.

Feb 26, 2024
Rocket Companies Reports Decline in Fourth Quarter Revenue, Projects Optimism for Future Growth

Despite revenue dip, mortgage giant sees increase in market share and advances in AI technology.

Feb 22, 2024