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Mortgage Rates Slip in Latest Measures

Mortgage rates eased for a second straight week to start October as the latest housing and economic news came up mixed.

In its Primary Mortgage Market Survey for the week ending October 2, Freddie Mac reported a minor pullback in the 30-year fixed interest rate to an average 4.19 percent (0.4 point) from last week's 4.20 percent. The average 30-year fixed was also little changed from last year's average rate of 4.22 percent.

The 15-year fixed average rate was unchanged at 3.36 percent (0.5 point).

Hybrid adjustable rates came down this week. According to Freddie Mac, the 5-year adjustable-rate mortgage (ARM) averaged an interest rate of 3.06 percent (0.5 point) in the latest survey, while the 1-year ARM averaged 2.42 percent (0.4 point).

"Mortgage rates were flat to slightly down across the board as GDP was revised up from 4.2 percent to 4.6 percent for the second quarter and the S&P/Case-Shiller National Price Index was up a seasonally adjusted 0.2 percent for July and up 5.6 percent from the prior July," said Frank Nothaft, VP and chief economist at Freddie Mac. "Pending home sales data were less optimistic, though, down 1 percent in August."

Those weren't the only factors tugging on mortgage rates this week, however. In an analysis, Bankrate.com pointed to mounting worries about global economic growth driving investors to the relative safety of Treasury bonds.

"Adding further uncertainty to financial markets were the pro-Democracy protests in Hong Kong. The nervousness of investors—regardless of the cause—helped bring bond yields and mortgage rates lower," the site said.

For its own survey, Bankrate recorded the 30-year fixed average at 4.27 percent, down from 4.30 percent, with the 15-year fixed rate down to 3.44 percent from 3.46 percent. The 5/1 ARM also fell, decreasing to an average 3.29 percent.

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.
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