For the week ending October 29, Freddie Mac announced that 30-year fixed rates rose one tick to 2.81% from 2.80% the week before. The average for 15-year loans decreased slightly to 2.32% and the average for five-year ARMs rose slightly to 2.88%. A year ago, 30-year fixed rates averaged 3.78%, almost 1.00% higher than today. “The record low interest rate environment is providing tangible support to the economy at a critical time, as housing continues to propel growth. Strong purchase demand is helping to lift the construction, manufacturing and transportation industries that build new homes and it is also leading to more consumer spending for owners, who are selling or improving their homes. On the refinance front, many consumers are smartly taking advantage of the ability to lower their monthly payment, which means they can spend, save or pay down debt more so than they have in the past,” said Sam Khater, Chief Economist, Freddie Mac.
Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.