Freddie Mac reports falling mortgage rates

A year ago, the rate averaged 3.92 percent. At this time a year ago, the 1-year ARM averaged 2.41 percent. A year ago, the average 30-year mortgage rate was 3.82 per cent, while the rate for 15-year loans was 3.08 per cent. One year ago, that rate was 4.01%.

1-year Treasury-indexed ARM averaged 2.62 percent this week with an average 0.2 point, up from 2.54 percent last week. The benchmark 30-year fixed-rate jumbo fell to 3.87% from 3.88%. ARM interest rates in the 5 year category at BMO Harris are being quoted at 2.750% with a starting April of 3.134%. The government-backed mortgage-backer aggregates current rates weekly from 125 lenders from across the country to come up with a national average mortgage rate.

Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage declined to 3.79 percent from 3.82 percent a week earlier.

Sean Becketti, Chief Economist at Freddie Mac, said 30-year mortgage rates fell three basis points this week as a result of remarks by Federal Reserve Governor Daniel Tarullo that Treasury yields had dipped.

“Rates are stable on the lower side”, says Pava Leyrer, chief operating officer of Northern Mortgage Services in Grand Rapids, Michigan. Adjustable mortgage rates were mixed, with the 5-year ARM holding at 3.18 percent and the 7-year ARM slipping to 3.26 percent. He noted that housing starts beat expectations in September and builder confidence was at a 10-year high. “With the MiMi purchase applications indicator at its highest level in more than seven years we expect home sales to remain strong”.

According to the latest data from the Mortgage Bankers Association, the market composite index – a measure of total loan application volume – climbed 11.8 percent from the previous week. Immediately after the rule change, applications plunged before rebounding this week.

The refinance share of mortgage activity accounted for 59.5 percent of all applications.