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Mortgage rates fell to lows never seen in October 2016, affected by concerns over manufacturing and the ongoing trade war with China, according to Freddie Mac.
| FRM 30 years | 15-year-old FRM | ARM OF 5/1 YEARS | |
| Average rates | 3.49% | 3.00% | 3.30% |
| Fees and points | 0.5 | 0.6 | 0.4 |
| Margin | N / A | N / A | 2.74 |
The 30-year fixed rate mortgage averaged 3.49% for the week ending September 5th, down from last week, when it averaged 3.58%. %. A year ago at the same time, the 30-year fixed-rate mortgage averaged 4.54%.
"Mortgage rates have continued to fall due to weak economic data," said Sam Khater, Freddie Mac's chief economist, in a press release. "While economic growth is slowing significantly due to rising manufacturing and trade difficulties, economic fundamentals remain solid for US consumers, with the unemployment rate low, housing affordability low, and improves, the demand of home buyers increases and the growth of real estate prices is stable. "
Rates fell following the release of an investigation Sept. 3, according to which the manufacturing sector had contracted for the first time in more than three years, according to Zillow, who published his own rate tracking system.
"The contraction was the last sign that the trade war between the United States and China was causing real damage to the economy." Indeed, most respondents said the slowdown in global trade was forcing them to limit their production, "said Matthew Speakman, economist at Zillow.
The 15-year fixed rate mortgage has averaged 3%, down from last week's 3.06%, Freddie Mac said. A year ago at the same time, the 15-year fixed rate mortgage averaged 3.99%.
The five-year hybrid adjustable rate hybrid mortgage rate averaged 3.3%, an average of 0.4 percentage points, down from last week (3.31%). %). A year ago at the same time, the five-year floating rate mortgage averaged 3.93%.
The instability caused by global events as well as the forthcoming publication of the Bureau of Labor Statistics could further reduce mortgage rates.
"In the future, mortgage rates will be subject to further turbulence, with markets equating major developments emerging from Hong Kong and the UK, as well as the jobs report of the month of August, which should be released on Friday, "Speakman said. "The labor market has been a pillar of the strength of the economy for many months, so a poor report would certainly alarm investors and further lower mortgage rates."
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