Mortgage Rates Sink to 16Month Lows

first_img in Daily Dose, Headlines, News Share Adjustable-Rate Mortgages Bankrate Fixed-Rate Mortgages Freddie Mac Mortgage Rates 2014-10-16 Tory Barringer A drop in Treasury bond yields dragged fixed mortgage rates to their lowest level in more than a year, according to reports.Freddie Mac released Thursday the results of its weekly Primary Mortgage Market Survey, showing the average 30-year fixed interest rate dropping 15 basis points to 3.97 percent (0.5 point) for the week ending October 16. The week’s average marks the lowest level for the 30-year fixed-rate mortgage (FRM) since the week of June 20, 2013—which also happens to be the last time it averaged below 4 percent.A year ago, the 30-year FRM averaged 4.28 percent, Freddie Mac reported.The 15-year FRM also experienced a significant decline, dropping 12 basis points to an average rate of 3.18 percent (0.5 point).Frank Nothaft, VP and chief economist at Freddie Mac, said the decline in fixed rates stems from a drop in the 10-year Treasury bond yield, which dipped below 2 percent for a period.”Rates are at their lowest levels since June 2013 amidst continued investor skepticism regarding the precarious economic situation in Europe,” Nothaft said.Adjustable rates posted similar declines, with the 5-year hybrid adjustable-rate mortgage (ARM) dropping 13 points to an average rate of 2.92 percent (0.5 point). The 1-year ARM posted a more modest decrease, falling 4 basis points to 2.38 percent (0.4 point).Personal finance website Bankrate.com also put out its interest rate measure for the week, reporting even bigger downward swings.According to the site’s national survey, the 30-year fixed average came in at 4.01 percent for the week—a higher average than in Freddie Mac’s survey, but a bigger decline at 17 basis points.The 15-year fixed average was 3.23 percent (down 14 basis points) for the week, while the 5/1 ARM was 3.09 percent (18 basis points), Bankrate reported.”Both bond yields and mortgage rates have dropped sharply as nervous investors have piled into save haven, less volatile investments,” the site said in an analysis. “Worries about slower growth in the global economy have unnerved financial markets in recent weeks, and mortgage shoppers are the happy beneficiaries.”center_img October 16, 2014 455 Views Mortgage Rates Sink to 16-Month Lowslast_img

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