Anticipation of the Federal Reserve’s continuation of its bond-purchasing stimulus program helped mortgage rates drift downward for a second consecutive week, Freddie Mac said.
Recent data showing a softening in the housing market also kept fixed mortgage rates are at their lowest levels since June.
In its latest policy-setting statement Wednesday, the Fed said it saw moderate improvement in economic activity and labor market conditions, 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,” said Frank Nothaft, vice president and chief economist, Freddie Mac.
Here is Freddie Mac’s overview for the week:
- 30-year fixed-rate mortgage (FRM) averaged 4.10 percent, with an average 0.7 point, for the week ending October 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.
- 15-year FRM this week 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.
- 5-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 3.00 percent. A year ago, the 5-year ARM averaged 2.74 percent.
- 1-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 1-year ARM averaged 2.58 percent.