U.S. mortgage rates drop near six-month lows

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 5.98%, down from last week’s 6.03% average and the lowest since the week ending May 17, when it averaged 5.92%. It averaged 6.05% a year ago. And one-year Treasury-indexed ARMs averaged 5.57%, down from last week’s 5.66% average. This was the lowest for the rate since the week ending May 31, when it averaged 5.57%. It averaged 5.53% a year ago.

To obtain the rates, the 30-year and 15-year fixed-rate mortgages, along with the five-year ARM required payment of an average 0.4 point. The one-year ARM required payment of an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.

“October’s consumer confidence fell to its lowest level since October 2005, as mortgage rates continued to decline this week to their lowest level in almost six months,” said Frank Nothaft, Freddie Mac vice president and chief economist, in a news release.

“Continued market concerns about weaker economic growth and further declines in the housing market have kept mortgage rates low over the last few weeks.” “Although the third quarter gain in real gross domestic product (GDP) of 3.9% was stronger than market forecasts, the housing market has subtracted from GDP growth over the past 21 months ending in September,” he said.

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