Mortgage Rates Remain at All Time Low - But Getting Approved is Becoming Harder

Demand for mortgages from homebuyers and homeowners refinancing continues to rise, as rates continue to find new record lows in the wake of the Federal Reserve's latest round of mortgage bond purchases.


But mortgage underwriting standards -- largely dictated by Fannie Mae, Freddie Mac and the Federal Housing Administration -- remain tight, and mortgages are difficult to obtain for those with less than sterling credit.

Rates for a 30-year fixed-rate mortgage averaged 3.36 % for the week ending Oct. 4, down from 3.40% last week and 3.94% a year ago, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey. That's a new low in Freddie Mac records dating to 1971.

Homeowners who refinance are frequently interested in a 15-year fixed-rate mortgage. Those rates averaged 2.69%, down from 2.73% last week and 3.26% a year ago. That's a new low in records dating to 1991.

Rates on five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans averaged 2.72%, up from 2.71% last week but down from 2.96% a year ago. Rates on five-year ARM loans hit a low in records dating to 2005 of 2.69% during the week ending July 19.

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