Separately, Freddie Mac’s Primary Mortgage Market Survey (PMMS) found the 30-year fixed-rate mortgage (FRM) averaged 3.52 percent for the week ending Oct. 20, up from last week when they averaged 3.47 percent. This is the first time since June that the 30-year FRM has risen above 3.5 percent.
2.76 percent, while the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.85 percent this week, up from last week when it averaged 2.82 percent.
“This month, mortgage rates seem to be catching up to Treasury yields and returning to pre-Brexit levels,” said Sean Becketti, chief economist at Freddie Mac.
“Inventory has been extremely tight all year and is unlikely to improve now that the seasonal decline in listings is about to kick in,” said NAR Chief Economist Lawrence Yun. “Unfortunately, there won’t be much relief from new home construction, which continues to be grossly inadequate in relation to demand. There’s hope the leap in sales to first-time buyers can stick through the rest of the year and into next spring. The market fundamentals-primarily consistent job gains and affordable mortgage rates-are there for the steady rise in first-timers needed to finally reverse the decline in the homeownership rate.”