Monthly Archives: October 2015
WASHINGTON — Average long-term U.S. mortgage rates fell sharply this week amid concern over a labor market that has shown recent signs of weakness.
Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage dropped to 3.76% from 3.85% a week earlier. The rate on 15-year fixed-rate mortgages declined to 2.99% from 3.07%.
Rates have stayed below 4% for 11 straight weeks. This week's decline brought rates to levels far below last year's levels, providing an inducement for potential homebuyers. A year ago, the average 30-year mortgage rate was 4.19%, while the rate for 15-year loans was 3.36%.
The heightened interest among potential purchasers and homeowners looking to refinance was evident in a sharp increase in mortgage applications. Applications jumped 25.5% in the week ended Oct. 2 from the previous week, according to theMortgage Bankers Association.
OCT 8, 2015 12:31pm ET A weak jobs report was enough to send mortgage rates into a downward spiral, according to Freddie Mac's Primary Mortgage Market Survey for the week ending Oct. 8.
Altogether, this week's change clearly stemmed from the September jobs report, which came in well below expectations.
"Calling the September jobs report disappointing is an understatement," Freddie Mac chief economist Sean Becketti. "The sputtering U.S. economy added only 142,000 jobs…In response, Treasury yields dipped below 2% triggering a 9-basis-point tumble in the 30-year mortgage rate to 3.76%."
This week's figure remained well below last year, when it averaged 4.19%.
The 15-year FRM plummeted 8 basis points week-over-week, to an average rate of 2.99%. Last year, it averaged 3.36%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage also declined, albeit by only 3 basis points from the previous week, to an average rate of 2.88%. It was still well off its average rate from last year...