Happy Halloween! While you’re likely to get frightened by all the ghosts and goblins running around today, mortgage rates this week will surely make you scream! According to the weekly Primary Mortgage Market Survey, mortgage rates were slashed. In fact, the report shows average fixed mortgage rates declined for the second straight week, hitting their lowest levels since June. This is no trick, but it surely is a treat. Don’t believe me? Here’s the word from Freddie Mac:
30-year fixed-rate mortgage (FRM) averaged 4.10% with an average 0.7 point for the week ending October 31, 2013, down from last week when it averaged 4.13%. A year ago at this time, the 30-year FRM averaged 3.39%.
15-year FRM this week averaged 3.20% with an average 0.7 point, down from last week when it averaged 3.24%. A year ago at this time, the 15-year FRM averaged 2.70%.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96% this week with an average 0.4 point, down from last week when it averaged 3.00%. A year ago, the 5-year ARM averaged 2.74%.
1-year Treasury-indexed ARM averaged 2.64% this week with an average 0.4 point, up from last week when it averaged 2.60%. At this time last year, the 1-year ARM averaged 2.58%.
Like always, Frank Nothaft, vice president and chief economist from Freddie Mac, provided us with some valuable insight.
“Fixed mortgage rates eased further leading up to the Federal Reserve’s (Fed) October 30th monetary policy announcement. The Fed saw improvement in economic activity and labor market conditions since it began its asset purchase program, but noted the recovery in the housing market slowed somewhat in recent months and unemployment remains elevated. As a result, there was no policy change which should help sustain low mortgage rates in the near future.”
See? There’s no reason to be spooked. Rates are low. While I may not know what you did last summer, I do know that rates won’t stay this low forever. 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!