Mortgage-Rates-Fall

Interest rates fell slightly this week, according to the Freddie Mac Primary Mortgage Market Survey, following criticism by the Federal Reserve of Wall Street executives.

Federal Reserve Governor Daniel Tarullo criticized Wall Street executives for not doing enough to control the behavior of employees, and suggested regulators and prosecutors impose further constraints on the financial industry if it doesn’t do a better job of policing itself.

Rates on 15- to 30-year fixed-rate mortgages fell between 3 and 5 basis points and remain 5 to 10 basis points lower than they were a year ago.

  • 30-year fixed-rate mortgage (FRM) averaged 3.79 percent with an average 0.6 point for the week ending Oct. 22, 2015, down from last week when it averaged 3.82 percent. A year ago at this time, the 30-year FRM averaged 3.92 percent. 
  • 15-year FRM this week averaged 2.98 percent with an average 0.5 point, down from last week when it averaged 3.03 percent. A year ago at this time, the 15-year FRM averaged 3.08 percent. 
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.89 percent this week with an average 0.4 point, up from last week when it averaged 2.88 percent. A year ago, the 5-year ARM averaged 2.91 percent.
  • 1-year Treasury-indexed ARM averaged 2.62 percent this week with an average 0.2 point, up from 2.54 percent last week. At this time last year, the 1-year ARM averaged 2.41 percent. 

"Following Federal Reserve Governor Daniel Tarullo's remarks last week Treasury yields dipped. In response, 30-year mortgage rates fell 3 basis points this week to 3.79 percent. The housing market continues to benefit from low mortgage rates, with housing starts for September beating expectations and the NAHB's Housing Market index registering a ten year high in October," said  Sean Becketti, Freddie Mac‘s chief economist.