Mortgage rates have three options: rise, drop or remain the same. After a few weeks of inching upward/remaining unchanged, rates took a dive this week – not just any dive, either. In fact, according to the Primary Mortgage Market Survey, rates haven’t been this low since June.
That’s right. It’s been four months since rates have dropped this far. You know what this calls for? A celebration! To celebrate, I recommend locking in a rate while they’re low. To see how much rates have dropped, here’s the word from Freddie Mac:
30-year fixed-rate mortgage (FRM) averaged 4.13% with an average 0.8 point for the week ending October 24, 2013, down from last week when it averaged 4.28%. A year ago at this time, the 30-year FRM averaged 3.41%.
15-year FRM this week averaged 3.24% with an average 0.6 point, down from last week when it averaged 3.33%. A year ago at this time, the 15-year FRM averaged 2.72%.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.00% this week with an average 0.4 point, down from last week when it averaged 3.07%. A year ago, the 5-year ARM averaged 2.75%.
1-year Treasury-indexed ARM averaged 2.60% this week with an average 0.5 point, down from last week when it averaged 2.63%. At this time last year, the 1-year ARM averaged 2.59%.
As usual, Frank Nothaft, vice president and chief economist from Freddie Mac, provided us with some valuable insight:
“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. 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.”
So there you have it. To sum it up, rates are low – so low, in fact, we haven’t seen them this low in four months. If there’s one thing we know about rates, it’s that they can move up or down any given week. If you’re looking to refinance or get a new mortgage, you don’t want to miss out on these great low rates. Call us today!