Dennis Norman
According to Freddie Macs weekly mortgage market survey for the week ending October 1st, the interest rate on home mortgages dropped with 30 year fixed rate mortgages hitting the lowest level since May 28th. The survey shows the interest rate on a 30 year fixed rate mortgage for the week averaged 4.94 percent with 0.7 percent in fees and points, down from 5.04 percent last week. Last year at this time, the 30 year interest rate averaged 6.10 percent.
The interest rate on a 15-year fixed rate mortgage averaged 4.36 percent with 0.6 percent in fees this week, down from 4.46 percent last week. Last year at this time the 15 year interest rate averaged 5.78 percent. This marks the lowest interest rate for a 15 year fixed rate mortgage since Freddie Mac’s survey started tracking rates for this type of loan in 1991.
The interest rate on a five-year ARM averaged 4.42 percent with 0.6 percent in fees this week, down from 4.551 percent from last week. A year ago at this time the five-year ARM interest rate averaged 6.00 percent.
The interest rate on a one-year ARM averaged 4.49 percent with 0.5 percent in fees this week, down from 4.52 percent last week. A year ago at this time the one-year ARM interest rate averaged 5.12 percent.
“Low mortgage rates are helping to stabilize home sales,” said Frank Nothaft, Freddie Mac vice president and chief economist. “New home sales in August rose to the highest annualized pace since September 2008 and the inventory of unsold houses fell to the lowest level since February 1983.
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