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Conforming mortgage interest rates dropped slightly over the past seven days after weeks of steady increases, according to Freddie Mac.
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“The modest decline in mortgage rates is a welcome respite from the rapid increase in rates the last few weeks,” Sam Khater, Freddie Mac’s chief economist, said in a press release. “While the housing market has clearly softened in reaction to the rise in mortgage rates, the economy and consumer sentiment remain very robust and that will sustain purchase demand, particularly in affordable markets and neighborhoods.”
Mortgage rates held steady this past week despite the stock market’s turbulence, which led to its third largest weekly decline since the financial crisis, Aaron Terrazas, senior economist at Zillow, said when that company released its own rate tracker on Oct. 17.
“For the most part, bond markets saw through this temporary volatility, which has yet to spill over to long-term lending rates. Rates remain at their highest levels since 2011 and are showing few signs of retreating,” Terrazas said.
The 30-year fixed-rate mortgage averaged 4.85% for the week ending Oct. 18, down from last week when it averaged 4.9%, the Freddie Mac survey found. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.88%.
The 15-year fixed-rate mortgage this week averaged 4.26%, down from last week when it averaged 4.29%. A year ago at this time, the 15-year fixed-rate mortgage averaged 3.19%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.1% with an average 0.3 point, up from last week when it averaged 4.07%. A year ago at this time, the five-year adjustable-rate mortgage averaged 3.17%.
“A steady stream of weak housing data, with more expected over the coming days, have thus far failed to put a dent in rates’ upward momentum. Beyond housing, there are no major economic data releases scheduled for the next seven days, so rates are likely to hold steady,” Terrazas said.