Mortgage rates shoot up following bond yieldsMortgagePress.commortgage rates, Primary Mortgage Market Survey, ARMs, Frank Nothaft
Freddie Mac has released the results of its Primary Mortgage
Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM)
averaged 6.46 percent with an average 0.6 point for the week ending
Oct. 16, 2008, up from last week when it averaged 5.94 percent.
Last year at this time, the 30-year FRM averaged 6.40 percent. This
weeks increase of 52 basis points was the largest weekly increase
since the week ending April 17, 1987, when the 30-year FRM rose 84
basis points.
The 15-year FRM this week averaged 6.14 percent with an average
0.6 point, up from last week when it averaged 5.63 percent. A year
ago at this time, the 15-year FRM averaged 6.08 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
(ARMs) averaged 6.14 percent this week, with an average 0.6 point,
up from last week when it averaged 5.90 percent. A year ago, the
5-year ARM averaged 6.11 percent.
One-year Treasury-indexed ARMs averaged 5.16 percent this week
with an average 0.6 point, up from last week when it averaged 5.15
percent. At this time last year, the 1-year ARM averaged 5.76
percent.
Average commitment rates should be reported along with average
fees and points to reflect the total cost of obtaining the
mortgage.
"Interest rates for 30-year fixed-rate mortgages rose this week
to an eight-week high," said Frank Nothaft, Freddie Mac vice
president and chief economist. "ARM rates, which tend to be based
on shorter-term benchmarks, showed smaller gains in part due to the
Federal Reserve's Oct. 8 inter-meeting rate cut in the overnight
lending rate.
"Recent economic reports suggest the economy is still slowing.
For instance, retail sales fell for the third consecutive month by
1.2 percent in September. In addition, in its latest Beige Book,
released October 15th, the Federal Reserve indicated that economic
activity weakened in September across all twelve Federal Reserve
Districts and that several Districts also noted that their contacts
had become more pessimistic about the economic outlook."
For more informaiton, visit www.freddiemac.com.
