Mortgage Rates Drop To 2.88%

Mortgage rates are sitting below 3 percent for the 10th straight week, Freddie Mac reported Thursday in the weekly Primary Mortgage Market Survey.

Freddie’s survey found:

  • The 30-year fixed-rate mortgage averaged 2.88 percent with an average 0.8 point for the week ending October 1, down from last week’s 2.90 percent and 3.65 percent a year ago.
  • The 15-year fixed-rate mortgage averaged 2.36 percent with an average 0.7 point, down from last week’s 2.40 percent and last year’s 3.14 percent.
  • The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.90 percent with an average 0.2 point, unchanged from last week and down from last year’s 3.38 percent.

“As a result of low mortgage rates that have stayed under three percent since July, the housing market has seen a strong, upward trajectory during a very uncertain time,” said Sam Khater, Freddie Mac’s Chief Economist. “We’re seeing potential home buyers who now have more purchasing power and many current homeowners who have the option to refinance their loan for a better rate. However, several factors could disrupt this activity including high home prices, low inventory and lender capacity.”