It’s been a long time since rates have been this low. In fact, the last time 30-year fixed-rate mortgages were this low, the MLB season wasn’t even halfway over. The Boston Bruins and Chicago Blackhawks were competing in the Stanley Cup Final and the NFL season was still too far away to get excited about.
Fast forward to today. The MLB playoffs have begun. The NHL regular season is in its first week. The NFL season is already a quarter of the way through. And the average 30-year fixed-rate mortgage is at its lowest level since the week ending June 20, 2013. It’s safe to say there’s been a lot of change in the sporting and mortgage worlds. Let’s take a look at the numbers to see just how much things have changed (in the mortgage world, that is).
30-year fixed-rate mortgage (FRM) averaged 4.22% with an average 0.7 point for the week ending October 3, 2013, down from last week when it averaged 4.32%. A year ago at this time, the 30-year FRM averaged 3.36%.
15-year FRM this week averaged 3.29% with an average 0.7 point, down from last week when it averaged 3.37%. A year ago at this time, the 15-year FRM averaged 2.69%.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.03% this week with an average 0.6 point, down from last week when it averaged 3.07%. A year ago, the 5-year ARM averaged 2.72%.
1-year Treasury-indexed ARM averaged 2.63% this week with an average 0.4 point, unchanged from last week. At this time last year, the 1-year ARM averaged 2.57%.
As always, Frank Nothaft, vice president and chief economist from Freddie Mac, presented us with some useful information.
“With the onset of the federal government shutdown and declining consumer confidence, fixed mortgage rates fell for the third consecutive week. Consumer sentiment fell for the second month in a row in September to its lowest reading since April, according to the University of Michigan. Moreover, a recent Bloomberg survey of professional forecasters suggests that a partial federal shutdown lasting one week would shave 0.1% points off of GDP growth in the fourth quarter and even more if the shutdown lasts longer.”
What have we learned today? Rates haven’t been this low since June. While rates are low now, who knows when they’ll jump? If you’re looking to refinance or get a new mortgage, the time is now. Don’t wait. Call us today!