The average rate for a 30-year fixed-rate mortgage during the week ending Oct. 28 rose a bit to 4.23% from 4.21% the previous week as consumer confidence increased slightly, according to Freddie Mac.
Freddie Mac chief economist Frank Nothaft attributed the increase to mixed economic data that included the Conference Board’s consumer confidence measure, which—although higher—is still at low levels.
Similarly, while the 30-year rate inched up week-to-week, in the scheme of things it is still pretty low. A year ago, for example, it was 5.03%.
This was also true of the 15-year FRM rate, as it jumped to 3.66% from 3.64% in the latest week but was down from 4.46% a year ago.
The average rate for a five-year Treasury indexed hybrid adjustable-rate mortgage dropped to a low not seen since Freddie Mac started tracking it in 2005 at 3.41% in the latest week. This was down from 3.45% the previous week and also down from 4.42% a year ago.
The average one-year Treasury ARM rate in the latest week remained at 3.30%, unchanged from the previous week and down from 4.57% a year ago.
Average points were 0.8 for 30-year FRMs, 0.7 for 15-year FRMs and one-year Treasury ARMs, and 0.6 for five-year hybrids.
There have been questions about whether rates at or near record lows have been enough to spur loan activity in a market where tight underwriting is said to continue to preclude many borrowers from taking advantage of them, and many consumers remain wary of taking on debt.
Freddie Mac’s latest quarterly cash-out refinance survey shows the share of refinancers who take cash-out refi loans is at a record low.
But both purchase applications and refinancing applications in the latest Mortgage Bankers Association weekly survey were up a few percentage points. The MBA survey runs roughly a week behind Freddie Mac’s rates survey.
