The numbers: Mortgage rates took a breather from its march towards 7% this week, as the economic outlook looks uncertain.
The 30-year fixed-rate mortgage averaged 6.66% as of Oct. 6, according to data released by Freddie Mac on Thursday.
That’s down 4 basis points from the previous week — one basis point is equal to one hundredth of a percentage point, or 1% of 1%.
Last week, the 30-year was at 6.7%.
It’s worth noting that Mortgage News Daily, which follows day-to-day movement in mortgage rates, is noting that the 30-year is at 6.95%.
Though rates have come down as per Freddie Mac — albeit ever so slightly — overall, mortgage rates are still high relative to where they were a year ago.
“‘Rates remain quite high compared to just one year ago, meaning housing continues to be expensive for potential home buyers.’”
Last year, the 30-year was averaging at 2.99%.
“Rates remain quite high compared to just one year ago,” Sam Khater, chief economist at Freddie Mac, said in a statement, “meaning housing continues to be expensive for potential home buyers.”
This October, the average rate on the 15-year mortgage also dropped slightly to 5.9%
The adjustable-rate mortgage, or ARM, averaged 5.36%, up from the prior week. Interest in ARMs is rising, with the share of ARMs as a percentage of all mortgage applications for purchases of a home rising to 12%, the Mortgage Bankers Association said. That’s the highest level it’s reached since 2008.
Overall, mortgage applications fell significantly in the latest week, as buyers pulled back amid higher rates, and also due to the hurricane-induced closures in Florida.
The yield on the 10-year Treasury note
rose to 3.8% in morning trading on Thursday.
Got thoughts on the housing market? Write to MarketWatch reporter Aarthi Swaminathan at [email protected]