Fixed Mortgage Rate Continue To Fall
Fixed mortgage rates falling for the third consecutive week amid declining consumer confidence and the onset of the federal government shutdown. The average 30-year fixed rate mortgage is at its lowest level since the week ending June 20, 2013.
Mortgage Rates For the Week Of 10/03/2013
- 30-Year Fixed Rate Mortgage - The 30-year FRM averaged 4.22% with an average 0.7 in points & fees for week ending 10/03/2013, down from 4.32%. Last year at this time, the 30-year FRM averaged 3.36%.
- 15-Year Fixed Rate Mortgage - The 15-year FRM averaged 3.29% with an average 0.7 in points & fees for week ending 10/03/2013, down from 3.37%. Last year at this time, the 15-year FRM averaged 2.69%.
- 5-Year Adjustable Rate Mortgage - The 5-year ARM averaged 3.03% with an average 0.6 in points & fees for week ending 10/03/2013, down from 3.07% last week. Last year at this time, the 5-year ARM averaged 2.72%.
- 1-Year Adjustable Rate Mortgage - The 1-year ARM averaged 2.63% with an average 0.4 in points & fees for week ending 10/03/2013, unchanged from last week. Last year at this time, the 1-year ARM averaged 2.57%.
Consumer sentiment fell for the second month in a row in September to its lowest reading since April Moreover, a recent survey of professional forecasters suggests that a partial federal shutdown lasting one week would shave 0.1 percentage points off of GDP growth in the fourth quarter and even more if the shutdown lasts longer.
As for the low rates, borrowers will find they can lock a rate but can't close on their loans until the government is operational, or at least until the Internal Revenue Service is open. That's because lenders are required to verify a borrower's income documentation with the IRS prior to closing on a loan, and the IRS is mostly closed.
Whether the downward trend in rates will continue now depends on various factors, including on how congress deals with nation's budget and debt ceiling in coming weeks. Usually, rates also are influenced by economic data, including the closely watched monthly employment report. The September report is scheduled to be released Friday, but if the government remains shut, the report won't be issued.