Mortgage Rates Fall to Record Lows

Freddie Mac said today that mortgage rates fell to record lows for the second week in a row.

The 30-year fixed-rate mortgage averaged 3.36%, with an average 0.6 point for the week ended Oct. 4, down from 3.40%. The 15-year fixed-rate mortgage averaged 2.69%, with an average 0.5 point, down from 2.73%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.72%, up from 2.71%, while the one-year Treasury-indexed ARM averaged 2.57%, down from 2.60%.

Freddie Mac said data indicating a weakening economy and Federal Reserve purchases of mortgage securities drove the move.

The Mortgage Bankers Association said yesterday in its weekly report on mortgage applications that average contract interest rate for a conforming 30-year fixed-rate mortgage fell slightly from 3.63% to 3.53%. The rate for a jumbo 30-year fixed-rate mortgage also fell, from 3.87% to 3.82%. The average interest rate for a 15-year fixed-rate mortgage decreased from 2.98% to 2.90%. And the contract interest rate for a 5/1 adjustable rate mortgage fell from 2.61% to 2.59%.

The group reported an increase of 16.6% in its seasonally adjusted composite index, compared with last week's total, bring mortgage applications to a three-year high.

Filed under: 24/7 Wall St. Wire, Housing