Three Week Drop for Mortgage Rates

\r\nFor the third week, mortgage rates have dropped resulting in the lowest fixed rate mortgages since April of this year. A 30 year fixed rate mortgage is currently at 6.55, down from 6.63 last week and notably lower than the peak rate of 6.89 in July. Though rates continue to drop, this time last year showed a fixed rate of 5.89, showing that the industry still has a long way to go. Analyst are hopeful that the continued drop in rates will revive a slowing mortgage market, although many point out that high rates caused a massive over-saturation on the housing market.\r\n

The Federal Reserve noted the slowing economy as a contributor to a halt in their campaign to push short-term rates higher. One year ARMs (adjustable rate mortgages) maintained their rate of 5.69 this week, while five year ARMs dropped from last week. Compared to the same time last year, each mortgage product is averaging 1.00% higher in today’s market regardless of the drop in rates.\r\n