According to Freddie Mac's Primary Mortgage Market Survey for early October 2018, the 30-year fixed-rate mortgage in U.S. dropped slightly for the first time after five weeks of increases.
Sam Khater, Freddie Mac's chief economist, says, "Mortgage rates inched back a little in this week's survey, easing 1 basis point to 4.71 percent after hitting a seven year high last week. 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."
Added Khater, "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. With mortgage rates expected to track higher, it's going to be a challenge for the housing market to regain momentum."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.71 percent with an average 0.4 point for the week ending October 4, 2018, down from last week when it averaged 4.72 percent. A year ago at this time, the 30-year FRM averaged 3.85 percent.
15-year FRM this week averaged 4.15 percent with an average 0.4 point, down from last week when it averaged 4.16 percent. A year ago at this time, the 15-year FRM averaged 3.15 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.01 percent with an average 0.3 point, up from last week when it averaged 3.97 percent. A year ago at this time, the 5-year ARM averaged 3.18 percent.
U.S. mortgage applications for new home purchases increased 8.2 percent compared to September 2017. Compared to August 2018, applications decreased by 9 percent. This change does not include any adjustment for typical seasonal patterns.
According to the Mortgage Bankers Association's most recent Weekly Mortgage Applications Survey for the week ending September 28, 2018, U.S. mortgage applications remained unchanged from one week earlier.
According to the recently released CBRE U.S. Seniors Housing & Care Investor Survey, the appetite for senior housing acquisitions in the U.S. remains strong, with nearly two-thirds of investors planning to increase the size of their portfolios over the next 12 months.