U.S. fixed mortgage rates edged down for three consecutive weeks to a three-month low amid declining consumer confidence and the onset of the federal government shutdown, according to the Primary Mortgage Market Survey released Thursday by Freddie Mac.

The U.S. mortgage giant said the 30-year fixed-rate mortgage ( FRM) dropped to 4.22 percent, the lowest since late June, in the week ending Oct. 3 from 4.32 percent in the previous week, while the 15-year FRM, a popular guide for those looking to refinance, declined to 3.29 percent this week from 3.37 percent.

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) decreased to 3.03 percent, and the one-year Treasury-indexed ARM remained unchanged at 2.63 percent.

The partial federal shutdown lasting one week would shave 0.1 percent points off economic growth in the fourth quarter and even more if the shutdown lasts longer, economists forecast.

While the shutdown may not have immediate impact on mortgage rates, but more downward pressure comes from a potential U.S. debt default and market expectations that the Federal Reserve may not begin tapering the pace of its monthly bond purchases soon. Endi

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