Lowest rates improving market

Rates moved close to historic lows in the past week. Freddie Mac announced that for the week ending October 1, 30-year fixed rates averaged 4.94%, down from 5.04% the week before. The average for 15-year fixed fell as well to 4.36%. Adjustables followed the same downward trend with the average for one-year adjustables falling to 4.49% and five-year adjustables decreasing to 4.42%. A year ago 30-year fixed rates were at 6.10%. "Low rates are helping to stabilize home sales," said Frank Nothaft, Freddie Mac vice president and chief economist. "New home sales in August rose to the highest annualized pace since September 2008 and the inventory of unsold houses fell to the lowest level since February 1983. Although existing home sales fell somewhat in August, it was still the second strongest showing in 23 months.