Freddie Mac reported mortgage interest rates were down for the week as of September 26, although the decline only partially retraces the increases in the prior two week.
The 30-year fixed rate was down 9 basis points to 3.64% as of September 26, bringing the average for September to-date to 3.61%. This is about the same as the 3.62% for August and may hint that rates are not going to fall further in October.
The 15-year fixed rate was down 5 basis points to 3.16%. The September to-date average was 3.12%, a bit above the 3.08% in August.
The rate for a 5/1-year ARM was down 11 basis points to 3.38%, putting the September to-date average at 3.38%, just above the 3.36% in August.
The small decline in rates could reassure some potential home buyers that they have time to shop around before seeing affordability erode more than slightly. However, if demand for homebuying has been exhausted after an active summer, even low rates may not coax buyers into the market.
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