Freddie Mac recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates hitting new lows for the year as 10-year bond yields briefly dipped below 2 percent. At 3.97 percent the average 30-year fixed rate is at its lowest level since the week of June 20, 2013 when it averaged 3.93 percent. This was also the last time the 30-year fixed averaged below 4 percent in the PMMS until last week.
Mortgage rates were down sharply following the decline in the 10-year Treasury yield for the second straight week," says Frank Nothaft, vice president and chief economist, Freddie Mac. "Rates are at their lowest levels since June 2013 amidst continued investor skepticism regarding the precarious economic situation in Europe.
The 30-year fixed-rate mortgage (FRM) averaged 3.97 percent with an average 0.5 point for the week ending October 16, 2014, down from the previous week when it averaged 4.12 percent. A year ago at this time, the 30-year FRM averaged 4.28 percent.
Results show the 15-year FRM averaged 3.18 percent with an average 0.5 point, down from last week when it averaged 3.30 percent. A year ago at this time, the 15-year FRM averaged 3.33 percent.
Additionally, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.92 percent last week with an average 0.5 point, down from the previous week when it averaged 3.05 percent. A year ago, the 5-year ARM averaged 3.07 percent.
The 1-year Treasury-indexed ARM averaged 2.38 percent this past week with an average 0.4 point, down from the week prior when it averaged 2.42 percent. At this time last year, the 1-year ARM averaged 2.63 percent.