Mortgage Rates Rise to 4.28 Percent as Government Shutdown Nears an End

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates edging higher with the 30-year fixed-rate mortgage (FRM) averaged 4.28 percent with an average 0.7 point for the week ending Oct. 17, 2013, up from last week when it averaged 4.23 percent. A year ago at this time, the 30-year FRM averaged 3.37 percent. Also this week, the 15-year FRM averaged 3.33 percent with an average 0.7 point, up from last week when it averaged 3.31 percent. A year ago at this time, the 15-year FRM averaged 2.66 percent.  "Fixed mortgage rates edged up leading to the federal budget deadline this week. Recent confidence measures depict some of the effects of the government shutdown and uncertainty of the budget impasse," said Frank Nothaft, vice president and chief economist, Freddie Mac. "For instance, consumer sentiment in October fell for the second straight month to the lowest reading since January, according to the University of Michigan. Similarly, October's homebuilder confidence fell to a four-month low. However, despite these downturns in confidence, mortgage applications rose for the second consecutive week as of October 11th, elevated by increases in applications for refinancing." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.07 percent this week with an average 0.4 point, up from last week when it averaged 3.05 percent. A year ago, the five-year ARM averaged 2.75 percent. The one-year Treasury-indexed ARM averaged 2.63 percent this week with an average 0.4 point, down from last week when it averaged 2.64 percent. At this time last year, the one-year ARM averaged 2.60 percent.