Mortgage rates fell to lows not observed in October 2016, plagued by concerns about manufacturing and the ongoing trade war with China, according to Freddie Mack.
|30-year FRM||15-year FRM||5/1-year ARM|
|Average prices||3.49%||3.00%||3.30%  Fees and Points||0.5||0.6||0.4|
|Margin||Margin|| / Activated19659006 AccusedN / A Act19659006Russian2.74 Registered1|
"Mortgage rates continue the summer turmoil due to weaker economic data," said Sam Hather, Freddie Mack's chief economist, in a press release. "While economic growth is clearly slowing down due to growing manufacturing and trade slopes, the economic fundamentals are still stable for US consumers. Unemployment is low, housing affordability is improving, housing demand is increasing and housing price growth is stable. "
Prices fell after the publication of a study on September 3, which showed that the manufacturing sector was shrinking for the first time since more than three years, according to Zillow, when he launched his own tracker.
"The contraction was the latest sign that the US-China trade war was causing real damage to the economy – indeed, most survey respondents noted that slowing world trade is forcing them to curb their output," the economist says by Zillow Matthew Speakman.
The 15-year fixed rate mortgage was an average of 3% compared to last week, when it was an average of 3.06%, reported Freddie Mac. A year ago at this time, a 15-year fixed rate mortgage was on average 3.99%.
The five-year hybrid indexed by the Treasury with a variable rate hypothesis averages 3.3%, with an average of 0.4 points compared to last week, when it averaged 3.31%. A year ago at this time, a five-year, adjustable-rate mortgage averaged 3.93%.
The volatility caused by world events, as well as the forthcoming Bureau of Labor Statistics, could further reduce mortgage rates.
"Looking ahead, there will probably be more turmoil on mortgage rates as markets absorb key developments stemming from Hong Kong and the United Kingdom, as well as the August jobs report scheduled for Friday," Speakman said . "The labor market has been a pillar of the economy's strength for many months, so a weak report would surely alert investors and further suppress already low mortgage rates."