The usual rate that lenders are offering on a standard 30-year mortgage is back below 4% for the second time this year, according to Freddie Mac.
The rate dropped from an even 4% in Freddie’s survey last week to 3.99%.
The 3.94% recorded in the October 6 report was the lowest in the 40 years that Freddie Mac has been asking lenders across the U.S. about the rate they are offering on the 30-year loan.
The typical interest rate on the 15-year fixed home loan fell from 3.31% to 3.30% in the latest survey.
According to Freddie Mac, borrowers would have paid less than 1% of the loan balance in fees to obtain the loans.
Solid borrowers who shop around can find better rates than those in the survey, and paying additional points upfront to lenders also can lower the rate.
Freddie Mac economist Frank Nothaft stated, "The economy added 80,000 net jobs in October, below the market consensus forecast, but employment gains over the prior two months were revised up by 102,000 and the unemployment rate fell to 9.0 percent, the lowest in six months. Factory orders improved in September, yet the expansion in the service industry slowed in October."
Source: latimes.com