Less than a month after spiking to a four-month high [1], average fixed mortgage rates retreated back to their summer lows, according to reports from Freddie Mac [2] and Bankrate.com [3].
In its weekly Primary Mortgage Market Survey [4], Freddie Mac reported the average 30-year fixed interest rate came to 4.12 percent (0.5 point) for the week ending October 9, down from 4.19 percent. A year ago, the average 30-year fixed interest rate was 4.23 percent, the same as it was when rates jumped up in mid-September.
The 15-year fixed-rate mortgage (FRM) came to an average rate of 3.30 percent (0.5 point) from last week's average 3.36 percent, Freddie Mac said.
Adjustable rates were largely unchanged in Freddie Mac's survey. According to the company, the 5-year adjustable-rate mortgage (ARM) averaged an interest rate of 3.05 percent (0.5 point) this week, just down from 3.06 percent, while the 1-year ARM was unchanged at 2.42 percent (0.4 point).
Meanwhile, Bankrate recorded a 9-basis-point decline in the 30-year fixed average, bringing it to 4.18 percent for the week, while the 15-year fixed slipped 7 basis points to 3.37 percent. The 5/1 ARM was down only modestly, dipping 2 basis points to 3.27 percent.
Bankrate's analysis [5] pointed to continued nervousness about the state of the global economy as the biggest reason for the week's decrease in rates.
"The economic sluggishness seen around the globe, Europe in particular, has brought mortgage rates lower this year despite the Federal Reserve tapering their bond purchases," Bankrate said. "This also takes mortgage rates out of the narrow band of approximately one-tenth of a percentage point that had prevailed since mid-May."