November 6th, 2013
Fixed-rate mortgages are at levels not seen since June.
According to Freddie Mac’s most recent Primary Mortgage Market Survey, average 30-year FRMs are at 4.1 percent for the week ending Oct. 31. The current average is still well above last year’s figures, when rates were 3.39 percent. However, rates have not been in this region since the week ending June 20.
Additionally, 15-year FRMs declined. The average rate is 3.2 percent, which is a drop of 0.04 percent from the previous week. A year ago, the rate averaged 2.7 percent. Even if the progress is small, it still shows that rates are edging down.
“Fixed mortgage rates eased further leading up to the Federal Reserve’s (Fed) October 30th monetary policy announcement,” stated Frank Nothaft, vice president and chief economist at Freddie Mac. “The Fed saw improvement in economic activity and labor market conditions since it began its asset purchase program, but noted the recovery in the housing market slowed somewhat in recent months and unemployment remains elevated.”
For now, tapering of the monthly bond-buying program will not begin. The market still needs aid from the Fed to maintain demand and nationwide equity.