Two-week increase comes to close
It seems the slight uptick of mortgage rates we’ve seen this past month is now over. According to Freddie Mac’s Primary Mortgage Market Survey, the week’s average 30-year fixed mortgage rate clocked in at 3.88 percent — down from 3.91 percent the week previous.
For the first half of October, mortgage rates rose slightly week over week. According to Freddie Mac’s Chief Economist Sean Becketti, this is the first week they’ve dipped this month.
“Rates came down slightly this week, ending a brief, two-week streak of increases,” Becketti said. “The 10-year Treasury yield dipped six basis points, while the 30-year fixed mortgage rate fell three basis points down to 3.88 percent.”
Rates on 15-year fixed mortgages also fell for the week, dropping from 3.21 percent to 3.19 percent. Both 30-year and 15-year rates are still higher than one year ago, when they sat at 3.52 and 2.79, respectively.
Fees on both 30-year and 15-year mortgages stayed steady for the week, at 0.5 basis points.
Better than expected
According to a MarketWatch analysis in December 2016, housing experts forecasted mortgage rates to hover around 4.5 percent throughout 2017.
“Instead, they’ve averaged 4 percent,” MarketWatch reported. “And rates in the second half of the year are, on average, 20 basis points lower than in the first half.”
The year’s low rates are certainly good news for today’s consumers, helping balance out rising home prices in many areas of the U.S. But there’s no telling what could happen in December, when the Federal Reserve weighs in on its third potential interest rate hike of the year.
What's your mortgage rate?
Mortgage rates vary greatly by lender, so make sure you shop around if you want the best deal. But don’t wait long; average 30- and 15-year rates have dropped, so be sure to compare mortgage rates in your area today.