The average rate for 30-year fixed-rate mortgage held steady at 2.81% this week, up slightly from 2.80% last week but down significantly from 3.78% a year ago, according to Freddie Mac’s Primary Mortgage Market Survey.
“The record low mortgage rate environment is providing tangible support to the economy at a critical time, as housing continues to propel growth,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Strong purchase demand is helping to lift the construction, manufacturing and transportation industries that build new homes and it is also leading to more consumer spending for owners, who are selling or improving their homes. On the refinance front, many consumers are smartly taking advantage of the ability to lower their monthly payment, which means they can spend, save or pay down debt more so than they have in the past.”
For the week ended Oct. 29, the average rate for a 15-year fixed-rate mortgage was 2.32%, down slightly from 2.33% last week and down from 3.19% a year ago.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.88%, up slightly from 2.87% last week but down from 3.43% a year ago.