Sara Routhier, Managing Editor of Features and Outreach, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming worl...

Full Bio →

Written by

Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

Full Bio →

Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Oct 24, 2013

Advertiser Disclosure

Advertiser Disclosure: We strive to help you make confident loan decisions. Comparison shopping should be easy. We are not affiliated with any one loan provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about loans. Our goal is to be an objective, third-party resource for everything loan related. We update our site regularly, and all content is reviewed by experts.

Both fixed and adjustable mortgage loan interest rates dropped at least 15 basis points this week, according to rate reports supplied by loans.org.

During the week ending on Oct. 24, 2013, the 30-year fixed rate mortgage averaged 3.96 percent. This was a decrease from 4.11 percent reported last week. The 30-year rate has not dipped below four percent since the week ending on June 13, 2013.

The second mortgage loan interest rate, the 15-year FRM, decreased from 3.14 percent to 2.98 percent.

Finally, the 5/1 adjustable-rate mortgage dropped from 2.84 percent to 2.68 percent.

Mortgage loan interest rates have improved and lowered due to September’s lackluster employment report, according to Michael Kodsi, CEO of Choice Mortgage Bank.

Last month only added 148,000 jobs, the lowest rate seen since November 2008.

The low employment, coupled with the lagging uncertainty caused by the government shutdown, could create negative housing reports in the coming weeks, Kodsi said. Although he hopes he is wrong, mortgage default rates will likely rise.

The biggest concern from the shutdown is that when people are unemployed or furloughed, they focus mainly on the essentials. These bills include gas, cellphone payments, food and electricity. For many households without a consistent paycheck, the mortgage loan payment comes in second.

Kodsi said this exact trend occurred during the housing meltdown.

“If you don’t have a paycheck coming in, how do you make a mortgage payment?” he questioned.

Despite the lower rates this week, Jorge Newbery, CEO of American Homeowner Preservation, believes the housing market is still struggling.

He said during the summer, the market turned positive after “what had been a tough market for several years.” Unfortunately, this improvement has lessened in the past few months. Properties that would have received multiple offers during the summer are now remaining on the market with no offers.

“It’s something we are used to but it’s certainly a comedown from the highs of a few months ago,” Newbery said.

Impoverished neighborhoods in Chicago that dealt heavily with short-sales, foreclosures and underwater properties are still struggling. The national upswing this past spring and summer was not seen in these areas. Newbery’s company has loans on homes below $50,000 and $75,000 price ranges. The company even bought loans that have balances of $300,000 that are secured by homes valued at a dismal $10,000.

This occurred because of fraud or over-optimistic mortgage loan brokers. Newbery said the shady lending practices which occurred in the past remain today.

“There are a lot of challenges in the immediate and foreseeable future,” he said. “To say the housing crisis is over or the market is returning to normalcy, I think we are far from that.”