Mortgage rates drop to lowest level since June

This is really Great news!

One of my clients just locked in last week at 4.18. In August and September I was seeing 4.6 and 4.75%. I love to see them this low and it gives buyers more purchase power and keeps their payments lower. I know they will come up in the Spring but hoping it will stay this way for the winter months. That combined with home prices stabilizing its a great time to buy!

Rates on 30-year fixed-rate mortgages dropped to their lowest level since the end of June, amid speculation that the Fed would delay winding down its stimulus program.

“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 Frank Nothaft, vice president and chief economist at Freddie Mac. “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,” he added.

Rates on 30-year fixed-rate mortgages averaged 4.13 percent with an average point of 0.8 for the week ending Oct. 24, down from 4.28 percent last week but up from 3.41 percent a year ago, according to Freddie Mac’s latest Primary Mortgage Market Survey.

Rates on 15-year fixed-rate mortgages, five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans and one-year Treasury-indexed ARMs also all fell.

Source: Freddie Mac

 

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