RESIDENTIAL | LOANS | RATES

Mortgage Rates are Dropping Again

Last week’s blip answered with a blop — Week ended Oct 10

“Despite the economic slowdown due to weakening manufacturing and corporate investment, the consumer side of the economy remains on solid ground,” said Sam Khater, Freddie Mac’s Chief Economist.

“The fifty-year low in the unemployment rate combined with low mortgage rates has led to increased homebuyer demand this year. Much of this strength is coming from entry-level buyers — the first-time homebuyer share of the loans Freddie Mac purchased in 2019 is forty-six percent, a two-decade high.”

Freddie Mac reports the following national averages with mortgage rates for the week ending October 10:

30-year fixed-rate mortgages

• Averaged 3.57%, with an average 0.6 point
• Down 0.08% from last week’s 3.65% average
• One year ago, the 30-year rate average was 4.90%

15-year fixed-rate mortgages

• Averaged 3.05%, with an average 0.5 point
• 0.09% less than the 3.14% average last week
• This week in 2018, 15-year fixed averaged 4.29%

5-year hybrid adjustable-rate mortgages

• Averaged 3.35%, with an average 0.3 point
• Falling 0.03% from last week’s 3.38% average
• Last year at this time, 5-year ARMs were 4.07% on average

Reference: Freddie Mac