Freddie Mac data on mortgage interest rates showed rates down across the board as of October 10 from the prior week.
The 30-year fixed rate fell 8 basis points to 3.57%, erasing the gains over the month of September. The September average was 3.61%, the lowest since 3.47% in October 2016. The month rate is on track to remain at three year lows.
The 15-year fixed rate was down 9 basis points to 3.05%, well below the average of 3.12% for September and also nearing three year lows.
The rate for a 5/1-year ARM dipped 3 basis points to 3.35%, about on trend with recent weeks.
Consumers have responded to low mortgage rates with a revival of home buying, but with a cautious casting for the best values. Low rates mean some consumers will take on a slightly more expensive home, while others will use the savings to improve household balance sheets. In any case, the early October decline could mean that potential buyers will be in the market even after the summer season.
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