According to a Freddie Mac weekly survey, mortgage rates remained fairly steady for the week ending October 29, with the 30-year fixed-rate mortgage coming in at an average of 5.03 percent—up only slight from last weeks 5 percent average. Last year at this time, the 30-year averaged 6.46 percent.
Over the past 10 months, the 30-year rate average has been at its lowest levels in the 38-year-old survey's history. The 15-year fixed-rate mortgage average was 4.46—a small increase. The five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.42 and one-year ARMs averaged 4.57 percent, up from 4.40 and 4.54 percent, respectively, for the week earlier. The five-year ARM was at 6.36 percent and the one-year ARM was at 5.38 percent during the same period last year.
Government stimulus efforts, including up to $1.45 trillion of mortgage-related debt purchases by the Federal Reserve — the U.S. central bank, have reduced and held down borrowing costs to bolster the housing market and the economy.
However, demand for mortgages slid last week for the third straight week, with home purchase applications the weakest since mid-May and refinancing requests at a two-month low.
Congress is currently debating a possible extension of the tax credit to keep adding fuel to the fragile housing market.
The National Association for Realtors reported a 9.4 percent jump in existing home sales for September and said last week that first-time buyers accounted for more than 45 percent of sales during the past year.
Surprisingly, however, the Commerce Department reported that new home sales experienced a 3.6 percent drop last month after rising the five prior months.
Manhattan Real Estate
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