Local News

AUSTIN (Austin Business Journal) – Long-term mortgage rates fell to a record low this week with the average rate on a 30-year fixed-rate mortgage in the week ending Oct. 7 of 4.27 percent, down from 4.32 percent last week.

A 15-year fixed-rate mortgage also fell from an average of 3.75 percent to 3.72 percent. The two rates represent the lowest long-term figures recorded since Freddie Mac began keeping track.

“The 12-month growth rate in the core price index for personal consumption, which the Federal Reserve closely tracks, has been drifting lower over the last six months ending in August and suggests inflation is running at a tepid pace at best,” said Freddie Mac Chief Economist Frank Nothaft. “This allowed mortgage rates to ease to new or near record lows.”

Additionally, the number of existing homes pending sale rose for the second consecutive month in August, up 4.3 percent, according to the National Association of Realtors. The association also reported that Austin home sales fell 15 percent year-over-year in August while sales so far this year have outperformed 2009.