Mortgage Rates Trend Downward for Third Straight Week

The summer of 2013 saw long-term mortgage rates ticking up well past the 4 percent mark and nearly touch 5 percent for the first time in close to two years.  Since their peak, home loan rates have started a trend downward, creating renewed opportunities for buyers and current owners.

The Primary Mortgage Market Survey from Freddie Mac, for the week ending Oct. 3, found the 30-year fixed-rate mortgage average at 4.22 percent, which is down from the 4.32 percent recorded the week before. To put that number in perspective, the 30-year FRM average was 3.36 percent this time last year.

However, to put these numbers in even greater perspective, Oct. 3 marked the third consecutive week of average mortgage rates falling, which is a good sign for prospective borrowers who were helped by a decline in consumer confidence and the federal government shutting down, as well.

“With the onset of the federal government shutdown and declining consumer confidence, fixed mortgage rates fell for the third consecutive week,” said Frank Nothaft, vice president and chief economist at Freddie Mac.  “Consumer sentiment fell for the second month in a row in September to its lowest reading since April, according to the University of Michigan.  Moreover, a recent Bloomberg survey of professional forecasters suggests that a partial federal shutdown lasting one week would shave 0.1 percentage points off of GDP growth in the fourth quarter and even more if the shutdown lasts longer.”

While it remains to be seen where mortgage rates will go from here, some economists predict they could fall further over the rest of the year to help offset the slowdown in home buying activity that is typically experienced in many parts of the country during the fall and winter months.

If you’d like to know more about your financing options, contact us today.  Our team of mortgage professionals have been serving the greater North Texas area for over 75 years combined and would love to help you customize your Dallas mortgage.