Mortgage Rates Fall as Markets Cope from Shutdown

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You should look for this to be the “norm” for the next 6 months or more. Small changes, both up and down, in interest rates are what will happen as long the Feds keep buying bonds and the job growth is slow or non-existent. For a more detailed look at this subject please read the article below.

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Though Capitol Hill’s gridlock over the debt ceiling was resolved—for now, at least—mortgage rates this week took a spill as market uncertainty spooked investors.

Freddie Mac released Thursday its Primary Mortgage Market Survey, which shows the 30-year fixed-rate mortgage (FRM) falling to an average rate of 4.13 percent (0.8 point) for the week ending October 24, down from 4.28 percent and the lowest level in about four months. Last year at this time, the 30-year FRM averaged 3.41 percent.

The 15-year FRM this week averaged 3.24 percent (0.6 point), down from 3.33 percent.

Adjustable rates were also impacted. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.00 percent (0.4 point) for the week, declining 7 basis points, while the 1-year ARM averaged 2.60 percent (0.5 point), down 3 basis points.

“Mortgage rates slid this week as the partial government shutdown led to market speculation that the Federal Reserve will not alter its bond purchases this year,” explained Frank Nothaft, VP and chief economist for Freddie Mac.

“The weak employment report for September added to this expectation. The economy added just 148,000 jobs, which was below the market consensus forecast and less than the 193,000 jobs increase in August,” he added.

Bankrate.com’s weekly measure of interest rates also showed them declining to a post-summer low, with the 30-year fixed averaging 4.42 percent and the 15-year fixed averaging 3.37 percent.

To read the complete article please use the link below.

Mortgage Rates Fall

Explore posts in the same categories: Real Estate Market Trends

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