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Mortgage rates remain below 4 percent

Posted on Friday, October 9, 2015 at 9:44:41 AM

For the week ending Oct. 2, 30-year fixed-rate mortgages sat below 4 percent while applications surged. This week, rather than rise back above the 4 percent threshold, rates fell even further

One year ago the average 30-year fixed rate mortgage was 4.19 percent, last week it was 3.85 percent and it fell further to 3.76 percent by the week ending Oct. 8, their lowest point in six months. Plummeting rates have been linked to September's weak jobs report, as well as slow economic growth worldwide.

The average 15-year fixed-rate mortgage, meanwhile, fell to 2.99 percent. This was the first time the rate for these mortgages - typically used for refinancing - fell below 3 percent since April. These rates fell from 3.07 percent last week and 3.36 percent a year ago. 

The week that rates dropped to 3.85 percent mortgage applications surged 25.5 percent. It is likely that with rates heading even further down, homebuyers will come out in droves to apply for residential financing once again.