Mortgage rates fall below 4%
Newton, MA. Top Brokers, Sotheby’s Newton, MA.
Long-term borrowing costs continued to fall this week, with the average rate on a 30-year mortgage falling back below 4 percent, to the lowest level since June 2013.
Freddie Mac (OTC: FMCC) says a 30-year fixed-rate mortgage averaged 3.97 percent in the week ending Oct. 16, down from 4.12 percent last week. A 15-year fix fell to 3.18 percent, down from 3.30 percent.
A one-year adjustable-rate mortgage averaged 2.38 percent, down from 2.42 percent.
Long-term mortgage rates tend to follow the 10-year U.S. Treasury rate, which saw yields fall briefly below 2 percent this week.
“Mortgage rates are at their lowest levels since June 2013 amidst continued investor skepticism regarding the precarious economic satiation in Europe,” said Freddie Mac chief economist Frank Nothaft.
Next week, reports are due on new home construction and sales of existing homes in September.
The consensus forecast is for housing starts last month to have risen 5.4 percent from August, with sales of existing homes rising 0.8 percent. If so, the gains would follow drops in home construction and housing sales in August.