This week, mortgage rates decreased substantially, reaching a rate that allows consumers to purchase a home with lower rate compared to a week earlier. According to Freddie Mac, all mortgage rates have decreased during this first full week of October, except for 1-year adjustable-rate mortgages. This decrease in mortgage rates gives homebuyers the opportunity to buy a home this week while paying a lower interest rate on their mortgage.
30-year fixed-rate mortgages decreased substantially this week, reaching 3.76% compared to 3.85% the previous week.
15-year fixed-rate mortgages dropped considerably as well, from 3.07% one week ago to 2.99% this week.
5-year adjustable-rate mortgages also decreased from 2.91% last week to 2.88% this week.
1-year adjustable-rate mortgages rose slightly to 2.55% this week, compared to 2.53% a week earlier.
As mortgage rates decrease, the number of mortgage applications has continued to rise, increasing 25.5% last week, compared to a week earlier. Apart from this huge increase of those wishing to get a loan, the average loan size has also increased, rising 6.9% on the week ending October 2, 2015.
The refinance share of mortgage activity last week dropped to 57.4% compared to the previous week, when refinancing amounted to 58% of all mortgage activity. The adjustable-rate mortgage share of activity demonstrated a large increased between the end of September and the beginning of October, rising from 6.9% two weeks ago to 7.6% last week.
The FHA share of mortgage applications dropped from 13.8% two weeks ago to 12.7% last week, while the VA share of all mortgages decreased from 10.3% to 9.2% during this same time. The USDA share of all mortgage applications remained at 0.7% for the third week in a row.