Mortgage rates fell for the first time in 13 weeks as falling oil prices eased inflation fears, according to Freddie Mac’s weekly survey.
In Freddie Mac’s survey, the 30-year fixed-rate mortgage averaged 6.28 percent for the week ended today, down from last week’s average of 6.37 percent. The average for the 15-year fixed-rate mortgage is 5.81 percent, also down from last week when it averaged 5.9 percent. Points on both the 30- and 15-year averaged 0.6.
The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 5.75 percent this week, with an average 0.8 point, down from last week when it averaged 5.86 percent. The one-year Treasury-indexed ARM averaged 5.14 percent, with an average 0.7 point, down from last week when it averaged 5.2 percent.
“Lower oil prices – at least compared to the last several months – have helped to alleviate some of the inflation fears that the market has been experiencing lately,” said Frank Nothaft, Freddie Mac vice president and chief economist. “That helped to reduce upward pressure on interest rates last week, allowing mortgage rates to ease a bit for the first time in 13 weeks.
“This should be a quiet week as the nation officially begins the holiday season, but next week existing- and new-home sales figures, which are expected to be lower, will be released. Consumer Confidence for November, which is expected to be up, will also come out next week. And these figures may well influence the direction of mortgage rates over the next few weeks.”
What’s your opinion? Send your Letter to the Editor to firstname.lastname@example.org.