Mortgage rates dip after two weeks of increases

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Mortgage rates ticked down for the first time in two weeks as the 10-year Treasury yield fell to its lowest point in October, according to Freddie Mac.

30-Year FRM 15-Year ARM 5/1-Year ARM
Average Rates 3.88% 3.19% 3.17%
Fees & Points 0.5 0.5 0.4
Margin N/A N/A 2.74

The 30-year fixed-rate mortgage averaged 3.88% for the week ending Oct. 19, down from last week when it averaged 3.91%. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.52%.

"Rates came down slightly this week, ending a brief, two-week streak of increases. The 10-year Treasury yield dipped 6 basis points, while the 30-year fixed mortgage rate fell 3 basis points," Sean Becketti, Freddie Mac's chief economist, said in a press release.

The 15-year fixed-rate mortgage this week averaged 3.19%, down from last week when it averaged 3.21%. A year ago at this time, the 15-year fixed-rate mortgage averaged 2.79%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.17% this week, up from last week when it averaged 3.16%. A year ago at this time, the five-year adjustable-rate mortgage averaged 2.85%.

"Mortgage rates fell late last week on disappointing inflation data and growing uncertainty about who will be appointed as the next chair of the Federal Reserve," Aaron Terrazas, Zillow's senior economist, said when that company released its own rate tracker on Wednesday.

"But rates recovered early this week and are now almost back were they stood a week ago. This week speculation over the future of the Fed, as well as expected policy news from the European Central Bank, are likely to dominate headlines as there are no major data releases on the calendar," Terrazas said.

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