Homebuyers Catch a Break, Mortgage Interest Rates Dip Slightly

Average U.S. mortgage interest rates declined 5 basis points for the week ending October 18, 2018, after several weeks of rising interest rates, according to Freddie Mac's weekly Primary Mortgage Markey Survey.

“The modest decline in mortgage rates is a welcome respite from the rapid increase in rates the last few weeks," Sam Khater, Freddie Mac’s chief economist, said. "While the housing market has clearly softened in reaction to the rise in mortgage rates, the economy and consumer sentiment remain very robust, and that will sustain purchase demand, particularly in affordable markets and neighborhoods.”

The 30-year, fixed-rate mortgage loan averaged 4.85 percent, with an average 0.5 point. Interest rates average 4.90 percent the previous week and 3.88 percent during the same period last year.

The 15-year, fixed-rate mortgage averaged 4.26 percent, with an average 0.4 point, down from 4.29 percent. A year ago, the 15-year note averaged 3.19 percent.

The five-year, adjustable-rate mortgage (ARM) averaged 4.10 percent, with an average 0.3 point, rising 3 basis points from the previous week. The 5-year ARM averaged 3.17 percent during the same timeframe in 2017.