Average fixed mortgage rates fell for the third consecutive week as consumer confidence slid and the federal government shut down, according to Freddie Mac. The average rate for a 30-year fixed-rate mortgage is at its lowest level since June.
“Consumer sentiment fell for the second month in a row in September to its lowest reading since April, according to the University of Michigan,” said Frank Nothaft, vice president and chief economist at Freddie Mac. “Moreover, a recent Bloomberg survey of professional forecasters suggests that a partial federal shutdown lasting one week would shave 0.1 percentage points off of GDP growth in the fourth quarter and even more if the shutdown lasts longer.”
The 30-year FRM averaged 4.22% for the week ending Oct. 3, according to the results of Freddie’s Primary Mortgage Market Survey. That’s down from last week’s 4.32%. A year ago at this time, the average rate was 3.36%.
The 15-year FRM dropped from last week’s 3.37% to 3.29%. Last year, the 15-year FRM averaged 2.69%.
The 5-year Treasury-indexed adjustable rate mortgage also fell last week, with average rates edging down to 3.03% from last week’s 3.07%. The 1-year Treasury-indexed ARM remained unchanged from last week.