Mortgage Rates Ease to Close October

Softening trends in the housing market brought fixed mortgage rates to their lowest level since June this week, according to data from ""Freddie Mac"":http://www.freddiemac.com/.

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The GSE's weekly Primary Mortgage Market Survey shows the average 30-year fixed rate falling to 4.10 percent (0.7 point) for the week ending October 31, down from last week, when it averaged 4.13 percent. A year ago, the 30-year fixed-rate mortgage (FRM) was averaging 3.39 percent.

The 15-year FRM this week averaged 3.20 percent (0.7 point), a decline from 3.24 percent.

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The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent (0.4 point) this week, a drop from 3.00 percent previously. However, the 1-year ARM rose, averaging 2.64 percent (0.4 point) from 2.60 percent before.

""Fixed mortgage rates eased further leading up to the Federal Reserve's October 30th monetary policy announcement,"" said Frank Nothaft, VP and chief economist for Freddie Mac.

The Fed ""announced Wednesday"":https://themreport.com/articles/fomc-votes-no-change-in-asset-purchases-2013-10-30 it has no plans at the moment to modify its asset purchase program, which will aid in sustaining low rates for the near future.

""Bankrate.com"":http://www.bankrate.com/ reported only minor changes in its weekly national survey, with the 30-year fixed average staying flat at 4.27 percent. The 15-year fixed was up to 3.38 percent, a rise of 1 basis point.

At the same time, the 5/1 ARM shifted down a basis point to 3.26 percent.

""Lingering worries about what, if any, damage the government shutdown and debt ceiling debate had on the economy is keeping bond yields and mortgage rates in a holding pattern,"" Bankrate said in its release. ""As we play catch-up on economic data, and get a read on the economy over the next month or so, this uncertainty should keep a lid on mortgage rates.""