US Mortgage Rates Fall Amidst Worries Over Slowing Economy

The 15-year FRM this week averaged 5.99 percent with an average 0.6 point, down from last week when it averaged 6.08 percent.  A year ago, the 15-year FRM averaged 6.10 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.03 percent this week, with an average 0.5 point, down from last week when it averaged 6.11 percent.  A year ago, the 5-year ARM averaged 6.14 percent. 

One-year Treasury-indexed ARMs averaged 5.66 percent this week with an average 0.6 point, down from last week when it averaged 5.76 percent.  At this time last year, the 1-year ARM averaged 5.60 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

“Market concerns about slower economic growth over the next few months allowed mortgage rates to drift lower from last week,” said Frank Nothaft, Freddie Mac vice president and chief economist.  “How much of a drag the housing slump will be on the economy remains unknown.  Additionally, recent reports suggest some regional manufacturing weakness in October.

“Meanwhile, sales of existing single-family homes in September dropped to the slowest pace in nearly a decade – since January 1989 – reflecting the effects of the credit tightening that occurred in August.”

 

Freddie Mac Region	PMMS Weights
Northeast	23.9
Southeast	20.4
North Central	14.3
Southwest	11.0
West	30.3

 

30-YEAR FIXED RATE MORTGAGES