According to an Oct. 1 Freddie Mac (FMCC) report, 30-year fixed mortgage rates averaged 2.88% for that week, down two basis points from the week before. Three weeks prior, the average rate for a 30-year loan fell to an all-time low of 2.86%.
The 15-year fixed-rate mortgage fell four basis points to an average of 2.36%, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage remained stagnant at 2.9% on average.
A dovish outlook from the Federal Reserve indicated that the central bank is most likely to keep mortgage rates low into the future. Additionally, this outlook has kept long-term bond yields low, including the 10-year Treasury note (^TNX). Mortgage rates historically track the direction of the 10-year Treasury note, for the most part.
The distance between the t...