WASHINGTON (10/24/14)--Mortgage rates continue to tick lower, as Freddie Mac's primary mortgage market survey revealed that 30-year fixed-rate mortgages averaged 3.92% for the week ending Oct. 23 (Housingwire.com Oct. 23).
Falling to their lowest levels since June 2013, rates dropped from 3.97% last week, and from 4.13% at this time last year.
"Fixed-mortgage rates continued to fall this week after the yield on 10-year Treasuries dropped to (its) lowest point of the year," said Frank Northaft, vice president/chief economist for Freddie Mac. "Existing-home sales beat expectations in September clocking in at an annual rate of 5.17 million units, up 2.4% from August."
Housing starts also climbed 6.3% in September, Northaft said, and building permits rose 1.5%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage fell to 2.91% for the week, which is down 3% year-over-year, while the 15-year fixed-rate mortgage rate increased to 3.23% from 3.21%.
"Mortgage rates posted a very slight rebound as financial markets stabilized and tensions about the Ebola virus, corporate earnings and the global economy all eased," said a report from Bankrate.com. "Just one week ago, as financial markets were suddenly gripped with worry, volatility spiked with investors stampeding into bonds, driving both bond yields and mortgage rates lower."
The Federal Housing Finance Agency also reported Thursday that house prices rose in August by 0.5% after a 0.2% increase in July.
Year-over-year, house prices have climbed 4.8%, the agency reported.