Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Bob Mason
Upscale modern house for sale

Mortgage rates slipped to yet another all-time low in the week ending 22nd October. Following a 6 basis point fall in the week prior, the 30-year fixed rate fell by 1 basis point to 2.80%.

Compared to this time last year, 30-year fixed rates were down by 95 basis points.


30-year fixed rates were down by 214 basis points since November 2018’s most recent peak of 4.94%.

Economic Data from the Week

Economic data was on the lighter side in the 1st half of the week.

Stats were limited to housing sector data for September, which was skewed to the positive in the week.

Building permits jumped by 5.2%, reversing a 0.5% fall in August, with housing starts rising by 1.9%. In August, housing starts had slumped by 6.7%.

From the week prior, stats were also skewed to the positive, supporting U.S Treasury yields.

Concerns over labor market conditions lingered, however, with initial jobless claims rising to 898k in the week ending 9th October.

From China, 3rd quarter GDP figures, retail sales, industrial production, and unemployment figures were also in focus.

The stats were skewed to the positive, with China’s economic recovery continuing through the 3rd quarter.

Away from the economic calendar, however, a failure to deliver a U.S stimulus bill and surge in new COVID0-19 cases weighed on yields in the week.

As a result of the surge in new COVID-19 cases across Europe, containment measures raise further uncertainty over the economic outlook.


Freddie Mac Rates

The weekly average rates for new mortgages as of 22nd October were quoted by Freddie Mac to be:

  • 30-year fixed rates decreased by 1 basis points to 2.80% in the week. Rates were down from 3.75% from a year ago. The average fee remained unchanged at 0.6 points.
  • 15-year fixed rates fell by 2 basis points to 2.33% in the week. Rates were down from 3.18% compared with a year ago. The average fee rose from 0.5 points to 0.6 points.
  • 5-year fixed rates declined by 3 basis points to 2.87% in the week. Rates were down by 53 points from last year’s 3.40%. The average fee increased from 0.2 points to 0.3 points.

According to Freddie Mac,

  • Mortgage rates remain very low, providing an opportunity for homebuyers who have not already taken advantage of the low mortgage rate environment.
  • Rates today are on average more than a full percentage point lower than rates over the last 5-years

Mortgage Bankers’ Association Rates

For the week ending 16th October, rates were quoted to be:

  • Average interest rates for 30-year fixed, backed by the FHA, remained unchanged at 3.12% for a 2nd consecutive week. Points also remained unchanged 0.35 (incl. origination fee) for 80% LTV loans.
  • Average interest rates for 30-year fixed with conforming loan balances increased from 3.00% to 3.02%. Points rose from 0.32 to 0.36 (incl. origination fee) for 80% LTV loans.
  • Average 30-year rates for jumbo loan balances increased from 3.30% to 3.33%. Points decreased from 0.35 to 0.30 (incl. origination fee) for 80% LTV loans.

Weekly figures released by the Mortgage Bankers Association showed that the Market Composite Index, which is a measure of mortgage loan application volume, slipped by 0.6% in the week ending 16th October. In the week prior, the index had decreased by 0.7%.

The Refinance Index rose by 0.2% from the previous week and was 74 percent higher than the same week a year ago. In the week prior, the index had slipped by 0.3%.

The refinance share of mortgage activity increased from 65.6% to 66.1%. In the week prior, the index had risen from 65.4% to 65.6%.

According to the MBA,

  • Mortgage rates rose to the highest since late September.
  • Despite the uptick in rates, refinance activity held steady, with FHA refinance applications posting a 17.6% increase.
  • Homebuyer demand remains strong this fall, while purchase applications fell by 2%.
  • With the ongoing housing sector recovery and low rate environment, both purchase and refinance applications remained robust compared with a year ago.
  • Refinance applications were up 74%, with purchase applications up 26% from a year ago.

For the week ahead

It’s a busier 1st half of the week on the U.S economic calendar.

Key stats include September durable and core durable goods orders and October consumer confidence figures.

While the stats will provide direction in the week, U.S politics and COVID-19 will also influence throughout the week.

Any updates from Capitol Hill and U.S election polls will provide direction. A further surge in new COVID-19 cases, however, would likely raise further concerns over the economic recovery.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.