Mortgage Rates Inch Down

(RTTNews) - Mortgage rates or interest rates on home loans inched down slightly for the first time in more than a month, according to mortgage provider Freddie Mac.

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 4.71 percent for the week ending October 4, 2018, down from last week's 4.72 percent. A year ago at this time, the average rate was 3.85 percent.

The 15-year FRM this week averaged 4.15 percent, down from 4.16 percent last week. A year ago at this time, the 15-year FRM averaged 3.85 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 4.01 percent, up from last week's 3.97 percent. It was 3.18 percent a year ago.

Sam Khater, Freddie Mac's chief economist, says, "Mortgage rates inched back a little in this week's survey, easing 1 basis point to 4.71 percent after hitting a seven year high last week. There is upside risk to mortgage rates as the economy remains very robust and this is reflected in the very recent strength in the fixed income and equities markets."

Added Khater, "However, the strength in the economy has failed to translate to gains in the housing market as higher mortgage rates have contributed to the decrease in home purchase applications, which are down from a year ago. With mortgage rates expected to track higher, it's going to be a challenge for the housing market to regain momentum."