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.
The National Association of Realtors is reporting this week that single female buyers continue to be a powerful force in the U.S. housing market, while low inventory, rising interest rates and increasing home prices remain, holding back first-time buyers despite notable interest in buying a home.