The decline follows weeks of steady increases
Mortgage rates took a breather during the week ending October 18, with the 30-year fixed-rate mortgage dropping slightly after weeks of steady increases, according to the Primary Mortgage Market Survey released by Freddie Mac.
Rates for the 30-year fixed-rate mortgage averaged 4.85%, with an average 0.5 point, down from its previous 4.9% average. The mortgage averaged 3.88% in the year-ago period.
The 15-year fixed-rate mortgage averaged 4.26%, with an average 0.4 point, down from 4.29%. A year ago at this time, the mortgage averaged 3.19%.
The average for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 4.1%, with an average 0.3 point, an increase from the 4.07% average in the previous survey. The 5-year ARM averaged 3.17% during the same week in 2017.
“The modest decline in mortgage rates is a welcome respite from the rapid increase in rates the last few weeks,” Freddie Mac Chief Economist Sam Khater said. “While the housing market has clearly softened in reaction to the rise in mortgage rates, the economy and consumer sentiment remain very robust and that will sustain purchase demand, particularly in affordable markets and neighborhoods.”
