WASHINGTON–Mortgage rates fell further, but it hasn’t been enough to spark an increase in home sales.
According to Freddie Mac:
- 30-year fixed-rate mortgage (FRM) averaged 3.42% with an average 0.5 point for the week ending September 29, 2016, down from one week earlier when it averaged 3.48%. A year ago at this time, the 30-year FRM averaged 3.85%.
- 15-year FRM this week averaged 2.72% with an average 0.5 point, down from last week when it averaged 2.76%. A year ago at this time, the 15-year FRM averaged 3.07%.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.81% this week with an average 0.4 point, up from last week when it averaged 2.80%. A year ago, the 5-year ARM averaged 2.91%.
Meanwhile, the National Association of Realtors reported that pending home sales resumed their downward trend in August, declining by 2.4%. It was the third time in four months that pending sales have failed to exceed the previous month's numbers.
The NAR reported its Pending Home Sales Index (PHSI), a forward-looking indicator based on home purchase contracts signed, was 108.5 in August compared to 111.2 in July and at the lowest level since a reading of 105.4 in January 2016. August's pending sales were also slightly (0.2%) lower than in August 2015.