by Calculated Risk on 10/31/2013 09:08:00 PM

From Freddie Mac: Fixed Mortgage Rates Decline for Second Consecutive Week

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates declining for the second consecutive week amid recent data showing softening in the housing market. Fixed mortgage rates are at their lowest levels since June.

30-year fixed-rate mortgage (FRM) averaged 4.10 percent with an average 0.7 point for the week ending October 31, 2013, down from last week when it averaged 4.13 percent. A year ago at this time, the 30-year FRM averaged 3.39 percent.

"Fixed mortgage rates eased further leading up to the Federal Reserve's (Fed) October 30th monetary policy announcement. The Fed saw improvement in economic activity and labor market conditions since it began its asset purchase program, but noted the recovery in the housing market slowed somewhat in recent months and unemployment remains elevated. As a result, there was no policy change which should help sustain low mortgage rates in the near future." [said Frank Nothaft, vice president and chief economist, Freddie Mac].
emphasis added

30 year rates peaked this year at 4.58% on August 22nd in the Freddie Mac survey. This is the lowest level since late June.

Friday:
• All day, Light vehicle sales for October. The consensus is for light vehicle sales to increase to 15.4 million SAAR in October (Seasonally Adjusted Annual Rate) from 15.2 million SAAR in September.

• At 9:00 AM, the Markit US PMI Manufacturing Index for October.

• At 10:00 AM ET, the ISM Manufacturing Index for October. The consensus is for a decrease to 55.0 from 56.2 in September. The ISM manufacturing index indicated expansion in September at 56.2%. The employment index was at 55.4%, and the new orders index was at 60.5%.

NOTE: The employment situation report for October that was originally scheduled for release on November 1st has been delayed until the following Friday, November 8th.