Mortgage rates saw a reversal of fortune his week, falling considerably after posting their largest weekly increase since 1987, according to the latest Freddie Mac survey.
The ever-popular 30-year fixed-rate mortgage averaged 6.04 percent during the week ending October 23, down from 6.46 percent last week and 6.33 percent a year ago.
The 15-year fixed slid to 5.72 percent from 6.14 percent, and remains below its year-ago level of 5.99 percent.
The five-year ARM averaged 6.06 percent, down from 6.14 percent last week, but above its year-ago average of 6.03 percent.
The only product moving in the opposite direction was the one-year ARM, which increased seven basis points to 5.23 percent, but still sits below the 5.66 percent average seen last year.
Freddie Mac chief Frank Nothaft attributed the easing in rates to news of tamer inflation and a weaker housing market.
Meanwhile, over at Bankrate, mortgage rates saw the largest weekly drop since May 1995, which they tied to the recent drop in the Libor, among other things.
The average conforming 30-year fixed fell 42 basis points to 6.32 percent, while the average 30-year jumbo slid 22 basis points to 7.65 percent.
Expect more mortgage rate volatility going forward as uncertainty festers in the financial markets.
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