The average rate on the 30-year fixed-rate mortgage (FRM) fell to 3.37 percent this week, with an average 0.7 point, for the week ending Oct. 18.
That’s just a notch off the record low of 3.36 percent sent two weeks ago.
Some of the credit goes to good news from the new housing market.
“Mortgage rates remained more or less unchanged this week as home construction builds up steam. Construction on single-family homes jumped to an annualized rate of 11 percent in August, the strongest pace since August 2008. Over the first nine months of the year, single-family starts were 23 percent higher than the same period last year. Moreover, homebuilder confidence rose for the sixth consecutive month in October to the highest level since June 2006,” said Frank Nothaft, vice president and chief economist of Freddie Mac.
The 30-year FRM rate was down from 3.39 percent last week and down from 4.11 percent a year ago, according to Freddie Mac’s Primary Mortgage Market Survey.
The average rate on the 15-year FRM was also down, to 2.66 percent with an average 0.6 point. It averaged 2.70 percent last week. A year ago, the 15-year FRM averaged 3.38 percent.
The average interest rate on 5-year Treasury-indexed hybrid adjustable rate mortgage (ARM) was 2.75 percent this week, with an average 0.6 point, up from an average 2.73 percent last week. The 5-year ARM averaged 3.01 percent a year ago.
Finally, for the week ending Oct. 18, Freddie Mac reported the 1-year Treasury-indexed ARM averaged 2.60 percent, with an average 0.4 point, up from 2.59 percent last week, and down from 2.94 percent a year ago.