The average interest rate on a 30-year fixed-rate mortgage fell four basis points and the 15-year fixed-rate mortgage dropped one basis point. The average 5/1 ARM fell three basis points, according to a NerdWallet survey of daily mortgage rates published by national lenders Thursday.
The drop in rates came a day after across-the-board increases in fixed and adjustable rates. The 30-year fixed-rate mortgage is eight basis points higher than a week ago, and is 42 basis points higher than a year ago.
Even with mortgage rates near historically low levels, home resales are sluggish. The Pending Home Sales Index was unchanged for September compared with August, according to the National Association of Realtors. That indicates that existing home sales will be relatively flat over the next two months. The sales index of 106 for August and September is at its lowest since January 2015, according to the NAR.
Demand for homes exceeds the supply of homes for sale in most markets, NAR chief economist Lawrence Yun said in a news release. The high demand drives prices up, canceling out the savings that home buyers would get from the drop in mortgage rates since the beginning of the year, he said.
Yun said that Hurricane Irma depressed pending home sales in Florida in September, but he said those sales should bounce back quickly, as Texas home sales did after Hurricane Harvey.
MORTGAGE RATES TODAY, THURSDAY, OCT. 26:
NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.