Real Estate & Area News

30-Year Mortgage Rate Slides 13 Basis Points

US mortgage giant Freddie Mac reported Thursday that mortgage rates slid this week for the first time in the last three. Rates are still low in historical terms, despite moving higher in an overwhelming number of weeks so far this year. Last week's declines were amongst the biggest we've seen in 2013, nearly erasing the increases of the previous two weeks. Rates peaked during the summer, when speculation about the impending unwinding of federal programs to keep rates down. But the Fed now appears ready to wait a few more months before making any changes to its stimulus program.

According to Freddie's report, the average rate for a 30 year, fixed rate mortgage was 4.22 percent. That's down from last week's average of 4.35 percent and even further below the 4.58 percent average seen in August, the high so far this year, but well above the average 30-year rate of 3.34 percent seen during the first week of the year. The lowest average on record was set last year for the 30-year, the most common type of mortgage used in home purchases in the US. The 15 year fixed loan, more commonly used in refinancing, averaged 3.27 percent this week, compared to 3.35 percent a week ago. There was a decline, as well, in the average rate for a 5-year, adjustable rate mortgage, or ARM, from 3.01 percent last week to 2.95 percent. The average rate for a one-year ARM, meanwhile, held steady at 2.61 percent.

November 22, 2013