For the third consecutive week, the interest rate for the 30-year fixed-rate mortgage increased. The rise came despite the Federal Reserve cutting its key benchmark rate for the third time this year. The Fed’s interest rate often influences mortgage rates.
However, home buyers are still taking advantage of historically low mortgage rates, Freddie Mac reports. “Purchase activity continues to show strength, indicating obvious homebuyer demand,” says Sam Khater, Freddie Mac’s chief economist. “However, the lack of housing supply remains a major barrier to not just the housing market but the overall economic recovery.”
Freddie Mac reports the following national rates for the week ending Oct. 31:
30-year fixed-rate mortgages: averaged 3.78%, with an average 0.5 point, rising from last week’s 3.75% average. Last year at this time, 30-year rates averaged 4.83%.
15-year fixed-rate mortgages: averaged 3.19%, with an average 0.6 point, rising from last week’s 3.18% average. A year ago, 15-year rates averaged 4.23%.
5-year hybrid adjustable-rate mortgages: averaged 3.43%, with an average 0.4 point, up from last week’s 3.4% average. A year ago, 5-year ARMs averaged 4.04%.