Mortgage rates have eased back down this week as consumers' sentiment towards the housing market improved.
The Freddie Mac Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) averaged 3.69%. That's nine basis points down from last week's 3.78% and more than one percentage point from last year's 4.94%.
The 15-year FRM fell to 3.13%, down from 3.19% the prior week and 4.33% the year before.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) dropped four basis points from last week when it averaged 3.43% to 3.39%. In 2018, the 5-year ARM was 4.14%.
“After a year-long slide, mortgage rates hit a cycle low in September 2019 and have risen in six out of the last nine weeks due to modestly better economic data and trade-related optimism,” said Freddie Mac Chief Economist Sam Khater. “The improvement in sentiment has been one of the main drivers behind the surge in equity prices and will provide a halo effect to consumer spending heading into the important holiday shopping season.”