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Oct. 8, 2022, 9:56 a.m. EDT

Mortgage rates dip slightly to 6.66%, but have doubled from a year ago

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By Aarthi Swaminathan

The numbers: Mortgage rates took a breather from its march towards 7% this week, as the economic outlook looks uncertain .

The 30-year fixed-rate mortgage averaged 6.66% as of Oct. 6, according to data released by Freddie Mac on Thursday. 

That’s down 4 basis points from the previous week — one basis point is equal to one hundredth of a percentage point, or 1% of 1%. 

Last week, the 30-year was at 6.7%. 

It’s worth noting that Mortgage News Daily , which follows day-to-day movement in mortgage rates, is noting that the 30-year is at 6.95%.

Though rates have come down as per Freddie Mac — albeit ever so slightly — overall, mortgage rates are still high relative to where they were a year ago. 

Last year, the 30-year was averaging at 2.99%.

“Rates remain quite high compared to just one year ago,” Sam Khater, chief economist at Freddie Mac, said in a statement, “meaning housing continues to be expensive for potential home buyers.”

This October, the average rate on the 15-year mortgage also dropped slightly to 5.9%

The adjustable-rate mortgage, or ARM, averaged 5.36%, up from the prior week. Interest in ARMs is rising, with the share of ARMs as a percentage of all mortgage applications for purchases of a home rising to 12%, the Mortgage Bankers Association said. That’s the highest level it’s reached since 2008.

Overall, mortgage applications fell significantly in the latest week , as buyers pulled back amid higher rates, and also due to the hurricane-induced closures in Florida.

The yield on the 10-year Treasury note /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y -3.06% rose to 3.8% in morning trading on Thursday.

Got thoughts on the housing market? Write to MarketWatch reporter Aarthi Swaminathan at aarthi@marketwatch.com

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