Freddie Mac's Primary Mortgage Market Survey (PMMS) indicates average 30 year fixed rate mortgages bumped up to 4.17 percent. This is a drop from last week's 4.24 percent. The 15 year fixed rate mortgage average dropped to 3.57 percent from last week's 3.63 percent.
[AD]With the Fed's plan to purchase $600 billion in Treasury bonds, expect to see mortgage rates drop further since Treasury bond yields will likely drop. Mortgage rates typically coincide with Treasury bond yield trends.
New home sales did rebound a little in September, but not enough for the housing market to be considered in recovery mode. Refinancing can be tough with tightened credit standards. Many people who could lower their monthly mortgage payment a couple hundred dollars a month might not qualify due to less-than-prefect credit history, owing more on a house than it is worth, or unemployment.