Fixed mortgage rates continue their downward spiral, falling for the second consecutive week in a row amid reports of a softening housing market.
The 30-year, fixed-rate mortgage sank to 4.10%, from 4.13% last week, but is still up from 3.39% last year, Freddie Mac said in its Primary Mortgage Market Survey.
"Fixed mortgage rates eased further leading up to the Federal Reserve’s October 30th monetary policy announcement," said Frank Nothaft, vice president and chief economist for Freddie Mac.
"The Fed saw improvement in economic activity and labor market conditions since it began its asset purchase program, but noted the recovery in the housing market slowed somewhat in recent months and unemployment remains elevated," he added.
As a result, Nothaft explained that there was no policy change which should help sustain low mortgage rates into the near future.
The 15-year, FRM dropped to 3.20% compared to 3.24% last week, but is higher than the 2.7% posted a year ago.
In addition, the 5-year Treasury-index adjustable rate mortgage hit 2.96% this week, a decrease from 3% last week, and up from 2.74% this time last year.
Meanwhile, the 1-year Treasury-index ARM averaged 2.64%, up from 2.6% last week and 2.58% a year earlier.
Bankrate noted that mortgage rates went largely unchanged, with the 30-year FRM holding at 4.27%.
Furthermore, the 15-year, FRM ticked higher to 3.38%, from 3.37%, while the 5/1 ARM slipped down to 3.26% when compared to 3.27% a week earlier.