Mortgage rates are rising but not by much, according to Freddie Mac’s recently released Primary Mortgage Market Survey® (PMMS®) results. These results showed average fixed mortgage rates nudging higher throughout the beginning of the week. However, Fed comments suggesting it may not raise short-term interest rates, coupled with weaker than expected consumer demand, pushed Treasury yields lower suggesting interest rates may remain lower than reported a while longer.
“As the shock of the weak September employment report wore off, Treasury rates drifted higher,” says Sean Becketti, chief economist, Freddie Mac. “In response, the 30-year mortgage rate climbed 6 basis points to 3.82 percent, marking 12 consecutive weeks below 4 percent. Late-breaking news suggests mortgage rates may remain in this territory a while longer. After this week’s survey closed, Federal Reserve Governor Daniel Tarullo was quoted suggesting the Fed may not act this year, and Wednesday the 10-year Treasury closed under 2 percent in reaction to economic releases indicating weak consumer demand.”
The 30-year fixed-rate mortgage (FRM) averaged 3.82 percent with an average 0.6 point for the week ending October 15, 2015, up from last week when it averaged 3.76 percent. A year ago at this time, the 30-year FRM averaged 3.97 percent.
Results show the 15-year FRM this week averaged 3.03 percent with an average 0.6 point, up from last week when it averaged 2.99 percent. A year ago at this time, the 15-year FRM averaged 3.18 percent.
Additionally, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.88 percent this week with an average 0.4 point, unchanged from last week. A year ago, the 5-year ARM averaged 2.92 percent.
The 1-year Treasury-indexed ARM averaged 2.54 percent this week with an average 0.2 point, down from 2.55 percent last week. At this time last year, the 1-year ARM averaged 2.38 percent.
For more information, visit www.freddiemac.com.