The 30-year fixed-rate mortgage and the 15-year fixed-rate mortgage both fell three basis points, and the 5/1 ARM dropped one basis point, according to a NerdWallet survey of daily mortgage rates published by national lenders Tuesday.
It was the second day in a row that mortgage rates fell across the board. The 30-year fixed rate began October at 4.03% and trended upward for most of the month. It’s 34 basis points higher than a year ago.
As mortgage rates have marched upward in the past 12 months, the U.S. homeownership rate went up, too — but just barely. The homeownership rate inched to 63.9% in the third quarter of this year, compared to 63.5% in the third quarter of 2016, according to the U.S. Census Bureau. That change “was not statistically different,” Census officials said.
Ten years ago, before the foreclosure crisis, the homeownership rate was significantly higher, at 68.2%. It had peaked at 69.2% in 2004, according to Census data.
The reason for this year’s anemic rise in the homeownership rate is simple, said Lawrence Yun, chief economist for the National Association of Realtors.
“There is just not enough supply of homes to fully satisfy the desire to own,” he said in a news release.
MORTGAGE RATES TODAY, TUESDAY, OCT. 31:
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.