US Mortgage Rates Slide Lower

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Average fixed mortgage rates in the U.S. reached their lowest level in months in the week ending October 24, in the wake of the government shutdown, Freddie Mac reports.

The 30-year fixed-rate mortgage averaged 4.13 percent this week, down from 4.28 percent the week before. Last year, the average was 3.41 percent.

"Mortgage rates slid this week as the partial government shutdown led to market speculation that the Federal Reserve will not alter its bond purchases this year," Frank Nothaft, vice president and chief economist, Freddie Mac, said in the report. "The economy added just 148,000 jobs [in September], which was below the market consensus forecast and less than the 193,000 jobs increase in August."

The 15-year fixed-rate mortgage averaged 3.24 percent, dropping from 3.33 percent the week before. At this time last year, the average was 2.72 percent. 

The one-year treasury-indexed ARM averaged 2.60 percent last week, down from 2.63 percent the prior week. 

A report yesterday showed mortgage applications dropped slightly last week.