Mortgage rates fall below 3.6%

by Candyd Mendoza14 Oct 2019

The 30-year fixed-rate mortgage (FRM) edged down eight basis points last week, according to Freddie Mac.

The Freddie Mac Primary Mortgage Market Survey showed that the 30-year FRM fell from 3.65% a week ago to 3.57% with an average 0.6 point. Last year, the 30-year FRM averaged 4.9%.

The 15-year FRM dropped nine basis points, down to 3.05% from the prior week, when it averaged 3.14%. A year ago, the 15-year FRM was 4.29%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.35%, declining from 3.38% the week before. In 2018, the 5-year ARM was 4.07%.

“Despite the economic slowdown due to weakening manufacturing and corporate investment, the consumer side of the economy remains on solid ground,” said Sam Khater, Freddie Mac’s chief economist. “The 50-year low in the unemployment rate combined with low mortgage rates has led to increased homebuyer demand this year. Much of this strength is coming from entry-level buyers – the first-time homebuyer share of the loans Freddie Mac purchased in 2019 is 46%, a two-decade high.”