Fixed mortgage rates held more or less steady this week as Capitol Hill remained locked in debate over budgetary concerns.[IMAGE]
According to data in ""Freddie Mac's"":http://www.freddiemac.com/ Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 4.23 percent (0.7 point) for the week ending October 10, just up from 4.22 percent last week. A year ago at this time, the 30-year FRM averaged 3.39 percent.
The 15-year FRM this week averaged 3.31 percent (0.7 point), up from 3.29 percent previously.[COLUMN_BREAK]
News was similar for adjustable rates. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.05 percent (0.4 point), rising from 3.03 percent. The 1-year ARM averaged 2.64 percent (0.4 point), increasing a single basis point.
In addition to putting markets into a ""wait and see"" position, the federal debt impasse made for a ""light week of economic data releases""--giving investors little to react to, explained Frank Nothaft, VP and chief economist for Freddie Mac.
Meanwhile, ""Bankrate.com"":http://www.bankrate.com/ recorded a fifth consecutive week of declines for fixed rates in its weekly national survey. According to the site, the 30-year fixed averaged 4.39 percent this week--down from 4.41 percent--while the 15-year fixed was flat at 3.47 percent.
The 5/1 ARM experienced the greatest movement, falling 6 basis points to 3.34 percent.
""The ongoing government shutdown and the looming debt ceiling deadline have made investors cautious. The prospect for slower economic growth has investors moving into longer-term government and mortgage-backed bonds, bringing yields lower,"" Bankrate said in a release. ""This has been good for mortgage rates, which are closely related to yields on long-term government bonds.""