Mortgage rates inch up from record low, adjustable mortgages hit record lows
- October 21, 2010
The average 30-year, fixed-rate mortgage rose 0.2 percentage points this week on mixed economic news, according to Freddie Mac.
The average mortgage was 4.21 percent, compared to 4.19 percent last week. A year ago, the average 30-year, fixed-rate mortgage was 5 percent.
The 15-year, fixed rate mortgage averaged 3.64 percent, compared with 3.62 percent last week. A year ago, the average rate was 4.43 percent.
This week, adjustable-rate mortgages hit record lows. The 5-year, Treasury-indexed, adjustable-rate mortgage was 3.45 percent, the lowest since Freddie Mac started tracking it in 2005. The 1-year, adjustable-rate mortgage was 3.3 percent this week, compared with 3.43 percent last week. The rate has never been lower since Freddie Mac started tracking it in 1984.
“Mixed inflation signals kept fixed mortgage rates at bay this week. The headline producer price index jumped 0.4 percent between August and September, which was quadruple the market consensus, while the consumer price index fell below the market forecast,” Freddie Mac Chief Economist Frank Nothaft said in a statement. “Rates on the traditional 1-year and 5-year hybrid ARMs eased to all-time record lows.”