Rates at lowest since June as confidence slides

by Ryan Smith04 Oct 2013

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.


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