U.S. Mortgage Rates Lower in Latest Week
Average mortgage rates in the U.S. fell in the latest week as the recent government shutdown lent support to expectations that the U.S. Federal Reserve will stand pat on its bond-buying program this year, according to mortgage- finance company Freddie Mac (FMCC).
Freddie Mac Chief Economist Frank Nothaft also noted that weak U.S. employment data for September also contributed to the sentiment.
Fed officials have been awaiting "substantial improvement" in the labor market before curtailing their bond purchases of $85 billion a month, which are aimed at keeping interest rates low and encouraging hiring.
For the week ended Thursday, the 30-year fixed-rate mortgage averaged 4.13%, compared with 4.28% a week earlier and 3.41% a year earlier. Rates on 15-year fixed-rate mortgages averaged 3.24%, compared with 3.33% the previous week and 2.72% a year earlier.
Five-year Treasury-indexed hybrid adjustable-rate mortgages, or ARMs, on average were 3%, compared with 3.07% the previous week and 2.75% a year earlier. One-year Treasury-indexed ARM rates on average were 2.6%, down slightly from 2.63% the previous week, but up from 2.59% last year.
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(END) Dow Jones Newswires 10-24-131045ET Copyright (c) 2013 Dow Jones & Company, Inc.