Thirty-Year Rate Jumps Back Up Above 4% Mark in One Week's Time

The run for below-four-percent 30-year mortgage rates was short-lived. After a history-making drop to 3.94 percent last week, Freddie Mac has recorded an 18 basis point jump in the average interest rate on a conventional fixed-rate mortgage with a 30-year term. The GSE says the 30-year fixed-rate mortgage averaged 4.12 percent (0.8 point) for the week ending October 13, coming off last week’s record low in which the 30-year rate dipped below the 4 percent mark for the first time ever. The 30-year rate is not too far off of levels since last year at this time, when it was averaging 4.19 percent. The 15-year rate also leapt higher. Freddie’s study puts the average 15-year fixed-rate mortgage at 3.37 percent (0.8 point) this week, up from 3.26 percent last week. A year ago at this time, the 15-year rate was averaging 3.62 percent. The 5-year adjustable-rate mortgage (ARM) is now averaging 3.06 percent (0.6 point). That’s up from 2.96 percent last week. Roll the clock back 12 months, and the average rate for a 5-year ARM was 3.47 percent. The 1-year ARM, which is tied to shorter-term Treasuries as opposed to the longer-term 10-year Treasury yields that influence fixed-rate movement, headed lower this week. Freddie reports the average rate for the 1-year ARM came in at 2.90 percent (0.6 point) this week, down from 2.95 percent last week. At this time last year, the 1-year ARM averaged 3.43 percent. Save for the 1-year ARM, mortgage rates across the board rose sharply this week from the previous week’s record-setting lows. Freddie Mac attributes the sudden upward movement to the better-than-expected employment report last Friday, but the GSE stressed that even with the increases, mortgage rates remain near their 60-year lows. Freddie Mac’s weekly rate survey is based on data collected from about 125 lenders across the country.