30-year Fixed Mortgage Rate Dips Below 4% Again

The 30-year fixed-rate mortgage averaged 3.99 percent this week, dropping below 4.00 percent for the second time this year, according to Freddie Mac.
The all-time low for the 30-year fixed — 3.94 percent — was recorded last month.
Mortgage rates changed little from the previous week amid a mix of economic reports:
The 30-year fixed-rate mortgage averaged 3.99 percent, with an average 0.7 point, for the week ending Nov. 10, down from last week when it averaged 4.00 percent. Last year at this time, the 30-year mortgage averaged 4.17 percent.
The 15-year fix rate mortgage this week averaged 3.30 percent, with an average 0.8 point, down from last week when it averaged 3.31 percent. A year ago at this time, the 15-year rate averaged 3.57 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.98 percent this week, with an average 0.6 point, up from last week when it averaged 2.96 percent. A year ago, the 5-year ARM averaged 3.25 percent.
The 1-year Treasury-indexed ARM averaged 2.95 percent this week, with an average 0.6 point, up from last week when it averaged 2.88 percent. At this time last year, the 1-year ARM averaged 3.26 percent.
“In addition, 30-year fixed mortgage rates averaged 4.3 percent in the third quarter, as opposed to 4.7 percent in the second,” said Frank Nothaft, vice president and chief economist, Freddie Mac. “These factors helped raise September’s National Association of Realtors’ Housing Affordability Index to the third-highest reading on record, which dates back to 1971.”
Soft house prices combined with low mortgage rates have kept home-buyer affordability historically high, but nearly one-third of U.S. homeowners are in negative equity – owing more on their home than its value. This makes it very difficult for them to take advantage of low home prices and all-time law rates.
In the third quarter, 74 percent of the National Association of Realtors’ measured metropolitan areas exhibited annual house price declines, compared to 72 percent in the second quarter.

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