Mortgage rates fall, approach record-lows

The latest report on mortgage records showed that rates fell closer to their lowest levels in history.

The latest report on mortgage records showed that rates fell closer to their lowest levels in history.

According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage averaged 3.37 percent during the week ending October 18, only one basis point higher than the record low, and down from the previous figure. Meanwhile, 15-year FRMs declined, to 2.66 percent in the latest report, from the previous week's figure of 2.7 percent.

Additionally, the five-year Treasury-indexed hybrid adjustable-rate mortgages' average increased slightly to 2.75 percent, the report explained. This was two basis points higher than the figure one week earlier.

"Mortgage rates remained more or less unchanged this week as home construction builds up steam," said Frank Nothaft, vice president and chief economist for Freddie Mac. "Construction on single-family homes jumped to an annualized rate of 11 percent in August, the strongest pace since August 2008."

The housing market may be further helped by the fact that home equity revolving credit improved to its highest point in three years in July. Property data from Equifax showed that revolving home equity credit rose 9 percent from the cyclical low in 2010.



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