WASHINGTON Average mortgage rates retreated again for the third week in a row, amid declining consumer confidence and the partial shutdown of the federal government, according to Freddie Mac.
"With the onset of the federal government shutdown and declining consumer confidence, fixed mortgage rates fell for the third consecutive week,” said Frank Nothaft, chief economist for Freddie Mac.
The average for the benchmark 30-year, fixed-rate loan declined to 4.22%, from 4.32% last week; and the average for the 15-year, fixed-rate loan slipped to 3.29%, from 3.37%.
ARM rates were mixed, with the average for the five-year ARM dropping to 3.03% from 3.07% last week; and the average for the one-year ARM unchanged at 2.63%.
Nothaft noted that consumer sentiment fell for a second month in a row in September to its lowest reading since April. Average fixed rates have been dropping for three straight weeks in the wake of the Federal Reserve's decision last month to maintain the pace of its bond-buying program designed to keep borrowing costs low.
