30-year mortgage soars back above 4%
Jobs report lifts mortgage rates, Freddie Mac economist says
By Amy Hoak, MarketWatch
CHICAGO (MarketWatch) — A better-than-expected jobs report last Friday caused mortgage rates to rise sharply this week, with rates on the 30-year fixed-rate mortgage back up above 4%, according to Freddie Mac’s weekly survey of conforming mortgage rates, released on Thursday.
Rates on the 30-year fixed-rate mortgage averaged 4.12% for the week ending Oct. 13, up from 3.94% last week. The mortgage averaged 4.19% a year ago.
Rates on 15-year fixed-rate mortgages also rose, averaging 3.37%, up from 3.26% last week. The mortgage averaged 3.62% a year ago.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.06%, up from 2.96% last week. The ARM averaged 3.47% a year ago.
But rates on 1-year Treasury-indexed ARMs fell this week, averaging 2.9%, down from 2.95% last week and 3.43% a year ago.
To obtain the rates, the fixed-rate mortgages required payment of an average 0.8 point, and the ARMs required payment of an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.
“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 of Freddie Mac, in a news release.
About 103,000 workers were added in September, he said, while revisions in the two previous months added 99,000 jobs to the payrolls. Read more: September data show improvement in jobs market.
“However, these job gains are still not large enough to bring down the current unemployment rate of 9.1%,” Nothaft said.