Mortgage rates went down as Treasury yields fell on weak manufacturing data, according to the Freddie Mac Primary Mortgage Market Survey.
The weekly survey reported that the average 30-year fixed-rate mortgage
Meanwhile, rates for both 15-year fixed-rate and five-year Treasury-indexed hybrid adjustable-rate mortgages declined 2 basis points week-over-week, to 3.16% and 2.99%, respectively. A year ago, the rate for a 15-year FRM was 3.1%, while the rate for the five-year Treasury-indexed hybrid ARM was 2.94%.
The one-year Treasury-indexed ARM was the only mortgage type to experience a rate increase, with its average rate edging up to 2.61% from 2.59%. This figure stood well above last year's, which was 2.41%. The report also noted that it will cease to include data on the one-year ARM beginning in January 2016.
While weak manufacturing data influenced the week's results, the industry's attention remains on the upcoming jobs report, according to Freddie Mac chief economist Sean Becketti.
"Treasury yields ticked down 3 basis points after weak manufacturing data," Becketti said in the release. "In response, the 30-year mortgage rate dropped 2 basis points to 3.93%. After the survey closed, [Federal Reserve Chair Janet] Yellen implied that the economy is ready for a rate hike in December. However, all eyes remain on this Friday's jobs report, the last significant release prior to the FOMC's meeting."
