There are plenty of adjectives to describe Michigan weather in the fall. A few that come to mind are volatile, unpredictable, erratic and random. One day, the sun is shining with temperatures in the mid-70s. The next day, you walk out to your car and realize you have to use an ice scraper to clear off your car windows.
While the weather can flip flop daily during the fall, mortgage rates can sometimes do the same. However, this wasn’t one of those weeks. In fact, there was barely even a change in mortgage rates. To see how little rates changed, here’s the word from Freddie Mac:
30-year fixed-rate mortgage (FRM) averaged 4.23 percent with an average 0.7 point for the week ending October 10, 2013, up from last week when it averaged 4.22 percent. A year ago at this time, the 30-year FRM averaged 3.39 percent.
15-year FRM this week averaged 3.31 percent with an average 0.7 point, up from last week when it averaged 3.29 percent. A year ago at this time, the 15-year FRM averaged 2.70 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.05 percent this week with an average 0.4 point, up from last week when it averaged 3.03 percent. A year ago, the 5-year ARM averaged 2.73 percent.
1-year Treasury-indexed ARM averaged 2.64 percent this week with an average 0.4 point, up from last week when it averaged 2.63 percent. At this time last year, the 1-year ARM averaged 2.59 percent.
As he always does, Frank Nothaft, vice president and chief economist from Freddie Mac, provided us with some valuable insight:
“Mortgage rates were little changed amid the federal debt impasse in Washington, D.C. and a light week of economic data releases. Of the few releases, the private sector added an estimated 166,000 jobs in September, which were fewer than the market consensus and followed a downward revision of 17,000 workers in August, according to the ADP Research Institute. The Institute for Supply Management reported a greater slowing in growth in the nonmanufacturing industry in September than the market consensus forecast.”
You see, it was a fairly quiet week in terms of change. That’s not to say that rates won’t hike up next week. If you’re looking to refinance or get a new mortgage, don’t miss out on these great low rates. Call us today!