Mortgage rates have decreased slightly for fixed and adjustable-rate mortgages, ending October 2015 on a happy note with the lowest rates since the end of April 2015. Meanwhile, mortgage applications followed a decreasing trend in the third week of October, with application numbers dropping compared to the week before.
Here is a brief summary of the most recent developments in mortgage rates, as reported by Freddie Mac:
- 30-year fixed-rate mortgages dropped to 3.76% this week compared to 3.79% a week earlier. This rate was matched on October 8, 2015, and was only lower on the last week of April 2015.
- 15-year fixed-rate mortgages remained at 2.98% for the first consecutive week, remaining at the lowest mortgage rate in six months, since April 30, 2015.
- 5-year adjustable-rate mortgages remained at 2.89% this week compared to a week earlier, continuing the low-rate trend from this month.
- 1-year adjustable-rate mortgages decreased substantially, dropping from 2.62% last week to 2.54% this week. This low 1-year mortgage rate has been more frequent this year.
Although mortgage rates have been decreasing lately, last week, ending October 23, 2015, mortgage applications dropped 3.5% compared to the increases we had seen in the past month, as stated in an MBA survey.
According to data from the same MBA Weekly Mortgage Applications Survey mentioned above, the refinance share of mortgage activity remained at 59.5% last week, remaining unchanged from a week earlier. Meanwhile, the adjustable-rate mortgage share of activity dropped to 6.6% of all applications last week, compared to 6.9% a week before.
The FHA and VA share of mortgage applications also decreased last week, dropping from 14.3% to 13.7%, and from 12.7% to 12.3% respectively. The USDA share of all mortgage applications increased however, rising from 0.6% two weeks ago to 0.7% last week.