According to a news release from Freddie Mac, the average 30-year fixed-rate mortgage dropped to 4.0%, down from 4.1% last week — a decline the GSE called “sharp.”

This is the second lowest reading Freddie says it has seen; the record was 3.94% on October 6.

More notes from the release:

  • Last year at this time, the 30-year FRM averaged 4.24%.
  • The 15-year FRM averaged 3.31% this week, down from 3.38% last week.
  • “5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent this week, with an average 0.6 point, down from last week when it averaged 3.08 percent. A year ago, the 5-year ARM averaged 3.39 percent.”
  • “1-year Treasury-indexed ARM averaged 2.88 percent this week with an average 0.6 point, down from last week when it averaged 2.90 percent. At this time last year, the 1-year ARM averaged 3.26 percent. “