Mortgage rates slide back after three consecutive increases

by Candyd Mendoza08 Nov 2019

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.”