New Primary Mortgage Market Survey data from Freddie Mac shows that mortgage rates continue to trend at a lower rate due to declining Treasury yields.
Freddie Mac said the 30-year fixed-rate mortage averaged at 3.79 percent in the week ending October 22, a drop from one week ago when it averaged 3.82 percent. Before, in 2014, the 30-year fixed-rate mortgage averaged 3.92 percent.
As for 15-year fixed-rate mortgages, these averaged 2.98 percent, down from last week's 3.03 percent average. 15-year fixed-rate mortgages have declined significantly from the 3.08 percent average one year ago.
Freddie Mac also said the less common 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.89 percent last week, up slightly from the 2.88 percent average one week ago. Last year, 5-year Treasury-indexed hybrid adjustable-rate mortgages averaged 2.91 percent. Finally, the 1-year Treasury-indexed adjustable-rate mortgage averaged 2.62 percent this week, from 2.54 percent one week ago. Last year, the 1-year Treasury-indexed adjustable-rate mortgage average was 2.41 percent.
Sean Becketti, Chief Economist at Freddie Mac, said 30-year mortgage rates fell three basis points this week as a result of remarks by Federal Reserve Governor Daniel Tarullo that Treasury yields had dipped.
"The housing market continues to benefit from low mortgage rates, with housing starts for September beating expectations and the NAHB’s Housing Market index registering a ten year high in October," Becketti concluded.