Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS)
, showing that the 30-year fixed-rate mortgage (FRM) dropped slightly after weeks of steady increases, averaging 4.85 percent with an average 0.5 point for the week ending Oct. 18. This total is down from last week when it averaged 4.90 percent. A year ago at this time, the 30-year FRM averaged 3.88 percent.
The 15-year FRM this week averaged 4.26 percent with an average 0.4 point, down from last week when it averaged 4.29 percent. A year ago at this time, the 15-year FRM averaged 3.19 percent. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.10 percent with an average 0.3 point, up from last week when it averaged 4.07 percent. A year ago at this time, the five-year ARM averaged 3.17 percent.
“The modest decline in mortgage rates is a welcome respite from the rapid increase in rates the last few weeks,” said Sam Khater, Freddie Mac’s Chief Economist. “While the housing market has clearly softened in reaction to the rise in mortgage rates, the economy and consumer sentiment remain very robust and that will sustain purchase demand, particularly in affordable markets and neighborhoods.”