Although average fixed mortgage rates moved slightly higher at the beginning of the week, they are predicted to remain around this level a little while longer, the latest Freddie Mac Primary Mortgage Market survey said.
According to the survey, “Fed comments suggesting it may not raise short-term interest rates yesterday, coupled with weaker than expected consumer demand, pushed Treasury yields lower suggesting interest rates may remain lower than reported a while longer.”
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(Source: Freddie Mac)
The 30-year fixed-rate mortgage averaged 3.82% for the week ending Oct. 15, 2015, up from last week when it averaged 3.76%. A year ago at this time, it averaged 3.97%.
Additionally, the 15-year FRM this week averaged 3.03%, up from last week when it averaged 2.99%. In 2014, the 15-year FRM averaged 3.18%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.88% this week, unchanged from last week. A year ago, the 5-year ARM averaged 2.92%
The 1-year Treasury-indexed ARM averaged 2.54% this week with an average 0.2 point, down from 2.55% last week. At this time last year, the 1-year ARM averaged 2.38%.
“As the shock of the weak September employment report wore off, Treasury rates drifted higher. In response, the 30-year mortgage rate climbed 6 basis points to 3.82%, marking 12 consecutive weeks below 4%,” said Sean Becketti, chief economist with Freddie Mac.
“Late-breaking news suggests mortgage rates may remain in this territory a while longer. After this week’s survey closed, Federal Reserve Governor Daniel Tarullo was quoted suggesting the Fed may not act this year, and Wednesday the 10-year Treasury closed under 2 percent in reaction to economic releases indicating weak consumer demand,” he continued.