Oct
21

Mortgage Rates on Most-Used Loans Rise Slightly

October 21, 2010

The 30-year fixed-rate mortgage has gone up for the first time in five weeks.

Freddie Mac reported today that the average rate for a 30-year FRM rose to 4.21 percent this week after hitting a record low 4.19 percent last week.

The 15-year fix-rate mortgage inched up too, increasing from a record-low 3.62 percent last week to 3.64 percent this week.

Arrows Up and DownThese averages are still far below the numbers last year at this time, which averaged 5 percent for a 30-year FRM and 4.43 percent for a 15-year.

Don’t worry, there are still record lows to report about:

*The 5-year Treasury-indexed hybrid adjustable-rate mortgage dropped from 3.47 percent last week to 3.45 percent this week. That is the lowest the 5-year ARM has been since Freddie Mac began tracking it in January 2005.

*The 1-year Treasury-indexed ARMs fell from 3.43 percent last week to 3.3 percent this week. That’s the lowest average for 1-year ARMs since they the mortgage buyer began tracking them in January 1984.

“Mixed inflation signals kept fixed mortgage rates at bay this week,” said Frank Nothaft, vice president and chief economist of Freddie Mac.

Despite the slight increase, rates are still near record lows, yet the Mortgage Bankers Association reported that applications to refinance fell 11.2 percent for the week ending October 15. The results don’t include an adjustment for the Columbus Day holiday, however.

And, let’s not forget about the good news we got on new home construction.

“New construction on one-family homes rose 4.4% in September to the strongest pace since May,” said Nothaft. “In addition, home-builder confidence rose in October to the strongest level since June, according to the NAHB/Wells Fargo Housing Market Index.”

Categories: Economy, Mortgages

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