The average rate for the conventional 30-year fixed-rate mortgage dropped below 4% for the first time in history, while the 15-year fixed-rate mortgage fell to its lowest level on record for the sixth consecutive week, according to Freddie Mac's Primary Mortgage Market Survey.
The 30-year fixed-rate mortgage averaged 3.94%, with an average 0.8 point for the week ending Oct. 6, down from last week when it averaged 4.01%. Last year at this time, the product averaged 4.27%.Â
The 15-year fixed-rate mortgage averaged 3.26%, with an average 0.8 point – down from last week, when it averaged 3.28%. A year ago at this time, the product averaged 3.72%.Â
Adjustable-rate mortgages (ARMs) showed mixed results. The five-year Treasury-indexed hybrid ARM averaged 2.96% this week, with an average 0.6 point – down from last week, when it averaged 3.02%. A year ago, the product averaged 3.47%. However, the one-year Treasury-indexed ARM averaged 2.95% this week, with an average 0.5 point, up from last week's average of 2.83%. At this time last year, the product averaged 3.4%.Â Â
Frank Nothaft, vice president and chief economist at Freddie Mac, attributed the declining rates to a combination of concerns over a new global recession and the newly reported declines in pending home sales and personal income.