Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed-rate mortgages (FRMs) up sharply from the previous week's record-setting lows of 3.94 percent following a better than expected employment report. Despite the sharp increase, mortgage rates remain near their 60-year lows.
The 30-year FRM averaged 4.12 percent with an average 0.8 point for the week ending Oct. 13, up from last week when it averaged 3.94 percent. Last year at this time, the 30-year FRM averaged 4.19 percent. The 15-year FRM this week averaged 3.37 percent with an average 0.8 point, up from last week when it averaged 3.26 percent. A year ago at this time, the 15-year FRM averaged 3.62 percent.
"An employment report that was better than market expectations helped to lift long-term Treasury bond yields and mortgage rates as well," said Frank Nothaft, vice president and chief economist for Freddie Mac. "The economy added 103,000 workers in September, aided by the return of striking Verizon workers. In addition, revisions to July and August figures added a total of 99,000 jobs to payrolls. However, these job gains are still not large enough to bring down the current unemployment rate of 9.1 percent."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.06 percent this week, with an average 0.6 point, up from last week when it also averaged 2.96 percent. A year ago, the five-year ARM averaged 3.47 percent. The one-year Treasury-indexed ARM averaged 2.90 percent this week with an average 0.6 point, down from last week when it averaged 2.95 percent. At this time last year, the one-year ARM averaged 3.43 percent.