Tuesday, October 18, 2011

Fixed Mortgage Rates Up Sharply Following Jobs Report

MCLEAN, Va., -- Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates up sharply from the previous week's record-setting lows following a better than expected employment report. Despite the sharp increase, mortgage rates remain near their 60-year lows.



30-year fixed-rate mortgage (FRM) averaged 4.12 percent with an average 0.8 point for the week ending October 13, 2011, up from last week when it averaged 3.94 percent. Last year at this time, the 30-year FRM averaged 4.19 percent.

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.
5-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 5-year ARM averaged 3.47 percent.

1-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 1-year ARM averaged 3.43 percent.

Frank Nothaft, vice president and chief economist at Freddie Mac, reports, "An employment report that was better than market expectations helped to lift long-term Treasury bond yields and mortgage rates as well. 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."

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