Friday Rate Update

Fixed Mortgage Rates Tumble to Near Yearly Lows

Freddie Mac reported on Sept. 29 that the average 30-year fixed-rate mortgage fell to 3.42 percent this week from 3.48 percent a week ago and 3.85 percent a year ago. This marks the lowest point for the 30-year fixed rate since it hit a yearly low of 3.41 percent in early July. Meanwhile, the average 15-year fixed-rate mortgage dropped to 2.72 percent from 2.76 percent a week ago and 3.07 percent a year ago, and the five-year adjustable-rate mortgage edged up to 2.81 percent from 2.8 percent a week ago but was down from 2.91 percent a year ago. "Investors flocked to the safety of government bonds causing the 10-year Treasury yield to continue its descent following the [Federal Open Market Committee's] decision to leave rates unchanged," said Freddie Mac chief economist Sean Becketti. "The course of the economy is uncertain, yet consumers continue to be a bright spot. The September consumer confidence index is up 3 percent to 104.1, exceeding forecasts and reaching a new cycle high."

From "Fixed Mortgage Rates Tumble to Near Yearly Lows"
Washington Post (09/29/16) Orton, Kathy