Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Mortgage Rates in U.S. Fall as 30-Year Home Loan at 3.37%

Don't Miss Out —
Follow us on:

Oct. 18 (Bloomberg) -- U.S. mortgage rates declined, pushing borrowing costs back toward record lows as homebuilders step up construction to meet rising demand.

The average rate for a 30-year fixed mortgage fell to 3.37 percent in the week ended today from 3.39 percent, McLean, Virginia-based Freddie Mac said in a statement. The average 15-year rate slid to 2.66 percent, a record, from 2.7 percent.

The 30-year rate reached 3.36 percent earlier this month, an all-time low, according to Freddie Mac. Low borrowing costs and improving employment are bolstering a real estate recovery. Housing starts jumped 15 percent in September to the fastest pace since since July 2008, Commerce Department figures showed yesterday. The 872,000 annual rate exceeded all forecasts in a Bloomberg survey of economists.

“We have turned an important corner,” Millan Mulraine, a senior U.S. strategist at TD Securities Inc. in New York, said in a telephone interview yesterday. “The housing sector has not only stabilized, but it is on its way to a more sustainable recovery.”

The jobless rate last month dropped to a three-year low of 7.8 percent, the Labor Department said Oct. 5.

Home-loan applications declined 4.2 percent in the week ended Oct. 12, according to the Mortgage Bankers Association. An index measuring refinancing dropped 5.3 percent, while the purchase gauge gained 0.9 percent to the highest level since June, the Washington-based group said yesterday.

To contact the reporter on this story: Prashant Gopal in New York at pgopal2@bloomberg.net

To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.