Trick or treat? It is indeed a treat for the mortgagors. The standard 30 year fixed rate mortgage rates continue to decline further as per the results released by Freddie Mac (NYSE: FMCC) after Halloween. This week’s results of their primary mortgage market survey showed that the rates have reached the lowest level since June, considering the softening of the housing market.
The benchmark 30 year fixed rate mortgages averaged at a rate of 4.10%, with 0.7 average points for the week ending 31 October 2013. The rates have definitely reduced from the last week’s recordings which showed the 30 year FRMs listed at an average rate of 4.13%. Considering the figure of 3.39% reported last year, around the same time, there has been a tremendous hike in the interest rates over a year.
Talking about the 15 year fixed rate mortgage, the loan options available in this category at Freddie Mac came down to 3.20% and 0.7 point average as against the average rate of 3.24% reported in the last week’s survey reports. At the same time of the year during 2012, the average rate of the 15 year FRMs was 2.70%.
Turning our heads towards the 5 year treasury indexed hybrid adjustable rate mortgage options available at Freddie Mac, the borrowers might be delighted to see the rates plunging down from 3.00% last week to 2.96% this week and an average of 0.4 points. A year ago, at the same time of the year, these treasure indexed hybrid ARMs were averaged at a rate of 2.74%.
For the interested borrowers, the 1 year treasury indexed ARMs available at Freddie Mac have now been listed at an average rate of 2.64% and a 0.4 average point, which has somehow increased in comparison to the figure of 2.60% recorded the last week. The current rates have surpassed the average ARM rate of 2.58% that was recorded at the same time in 2012.
The rates are known to be affected by the bank’s decision of selling preference bills worth $3 billion today. According to the senior officials at the bank, the selling portfolio comprises of $1 billion worth 3-month bills due for 3 February 2014, $1 billion worth 6-month bills due on 5 May 2014 and $1 billion worth 12-month bills due for 3 November 2014. The bills are to be sold through a Dutch auction online to the authorized dealers only. Considering the monetary value of the preference bills, this sale is ought to affect the next week’s mortgage rate at Freddie Mac.
Disclaimer: The advertised rates were submitted by each individual lender/broker on the date indicated. Rate/APR terms offered by advertisers may differ from those listed above based on the creditworthiness of the borrower and other differences between an individual loan and the loan criteria used for the quotes.
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