Despite the fact that the Fed recently hiked rates, mortgage rates stayed more or less flat this week, as the average rate for a 30-year fixed-rate mortgage (FRM) decreased to 4.71%, down from 4.72% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the 30-year FRM averaged 3.85%.
“Mortgage rates inched back a little in this week’s survey, easing one basis point to 4.71 percent after hitting a seven year high last week,” says Sam Khater, chief economist for Freddie Mac, in a statement. “There is upside risk to mortgage rates as the economy remains very robust and this is reflected in the very recent strength in the fixed income and equities markets.
“However, the strength in the economy has failed to translate to gains in the housing market as higher mortgage rates have contributed to the decrease in home purchase applications, which are down from a year ago,” Khater adds. “With mortgage rates expected to track higher, it’s going to be a challenge for the housing market to regain momentum.”
For the week ended October 4, the average rate for a 15-year FRM was 4.15%, down from 4.16% the previous week. A year ago at this time, the 15-year FRM averaged 3.15%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 4.01%, up from 3.97%. A year ago at this time, the five-year ARM averaged 3.18%.
