Mortgage Rates Hold Steady Just below 4%

By Kyle Chezum Updated on 9/25/2013

The Freddie Mac survey just released shows that the 30-year fixed rate mortgage is holding steady. The fixed rate mortgage inched up only slightly from the previous week averaging 3.9% this week compared to 3.88% last week. Today’s rate remains significantly lower than this time last year when the 30-year FRM averaged 4.7%.

It also showed that the 15-year FRM averaged 3.13%, which again was a slight rise from last week’s average of 3.11%. Like the 30-year FRM, the current rate of the 15-year FRM is lower compared to last year’s rate of 4.1%. This is still a great choice if you want a low rate, but want to pay off the loan faster than with the 30-year mortgage.

Adjustable rate mortgages also edged slightly down. The five-year, Treasury-indexed hybrid ARM averaged 2.78%, which was down from 2.85% the prior week. The current average is also a slight drop from last year’s 2.85%.

The one-year, Treasury- indexed ARMs averaged 2.81%, nearly unchanged from last week’s 2.80%. This rate is significantly lower than last year’s rate of 3.22%.

In contrast to Freddie Mac’s survey Bankrate, a home loan analytics firm, which surveys large banks, reported that the 30-year FRM stepped up to 4.10% from 4.09%, while the 15-year FRM stayed at 3.32%. The 5/1 Arm rose slightly to 3.05% from 3.03%.