Mortgage rates fall to four-month lows
Weak unemployment, federal freeze contribute to drop
Fixed mortgage rates spiraled down this week amid market speculation that the Federal Reserve will continue to commit to its bond buying purchases this year.
The 30-year, fixed-rate mortgage came in at 4.13%, down from 4.28% last week, but up from 3.41% last year, Freddie Mac said in its Primary Mortgage Market Survey.
"Mortgage rates slid this week as the partial government shutdown led to market speculation that the Federal Reserve will not alter its bond purchases this year," said Freddie Mac vice president and chief economist Frank Nothaft.
He added, "The weak employment report for September added to this expectation. The economy added just 148,000 jobs, which was below the market consensus forecast and less than the 193,000 jobs increase in August."
The 15-year, FRM decreased to 3.24%, down from 3.33% last week and a steep rebound from 2.72% last year.
Meanwhile, the 5-year Treasury-index adjustable-rate mortgage averaged 3%, dropping from 3.07% last week, but an increase from 2.75% a year ago.
Additionally, the 1-year Treasury-index ARM came in at 2.6%, down from 2.63% last week, but up from 2.59% a year earlier.
Bankrate also witnessed mortgage rates hitting a four-month low as a result of the government shutdown’s aftershock on the market, and disappointing jobs report — driving investors into the haven of government bonds, which resulted in lower yields.
Bankrate’s 30-year FRM dropped to 4.27% from 4.42% a week earlier.
Additionally, the 15-year, FRM decreased to 3.37%, down from 3.49%, while the 5/1 ARM dropped to 3.27%, down from 3.31%.