According to Freddie Mac's Primary Mortgage Market Survey, October has started with a bang for prospective homeowners.
For the week ending October 6, the average rate for a 30-year fixed loan sunk to 3.94 percent, down from 4.01 percent the week before and 4.27 percent during the same week the previous year. This marks the first time the rate has dropped below 4 percent since the beginning of Freddie Mac's survey in 1971. The average rate for a 15-year fixed loan was 3.26 percent, down from 3.28 percent the previous week.
"Average 30-year conventional fixed mortgage rates fell below 4 percent for the first time in history this week following a sharp drop in 10-year Treasuries early in the week as concerns over a global recession grew," said Frank Nothaft, Freddie Mac's chief economist and vice president. "Average 15-year fixed rates fell to a record low in the PMMS as well."
The average rate for a five-year adjustable-rate loan was 2.96 percent, declining from 3.02 percent the previous week and 3.47 percent the year before. Meanwhile, the rate for a one-year ARM averaged 2.95 percent, which was up from 2.83 percent the week before.
With interest rates continuing to reach record lows, the Houston real estate sector may continue to experience success with more prospective homeowners entering the market.
Courtesy of 2M Realty News