Mortgage rate keep falling ... and falling

Palm Beach

DELRAY BEACH — Gravity, it seems, has a firm grip on mortgage rates and won’t let go.

Freddie Mac’s Primary Mortgage Market Survey spotted the average 30-year fixed-rate mortgage dropping to 4.87 percent with an average 0.7 point this week, down from 4.94 percent. It’s the lowest since May 21, when it averaged 4.82 percent.’s weekly national mortgage survey put the 30-year at 5.22 percent, down from 5.25 percent a year ago.

Both the 15-year and the five-year adjustable rate mortgages set record lows this week, the 15 year fixed rate dropping to  4.33 percent from last week’s 4.36 percent and the five-year dipping to 4.35 percent from 4.42 percent a week earlier.

Freddie Mac has been tracking the 15-year since 1991 and the five-year since 2005.

The one-year ARM averaged 4.53 percent this week, up from 4.49 percent a week ago

"Long-term mortgage rates eased further this week," said Frank Nothaft, Freddie Mac’s vice president and chief economist. "Interest rates for 30-year fixed-rate loans were the lowest since mid-May; 15-year FRMs were at a record low since data were first collected in 1991 and 5-year ARMs also hit an all-time record starting in 2005. Compared to a year ago, consumers could shave almost $134 off their monthly mortgage payments on a 30-year fixed-rate loan for $200,000 by refinancing.”

Nothaft noted that low rates are spurring mortgage demand. Mortgage applications surged to a 19-week high over the week ending on October 2nd, according to the Mortgage Bankers Association. Applications for home purchases were at the strongest pace since the beginning of this year.

Bankrate’s survey put the 15-year at 4.60 percent. The average 1-year ARM inched higher to 5.24 percent and the 5-year ARM fell to 4.66 percent.

Bankrate's panel of mortgage experts sees rates most likely in a holding pattern over the next 30 to 45 days, neither rising much or falling much further.

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