Industry News

Job gains push mortgage rates up

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Long-term mortgage rates this week inched higher after September's employment report reflected a stronger-than-expected economy, according to surveys conducted by Freddie Mac and Bankrate.com. In Freddie Mac's survey, the 30-year fixed-rate mortgage edged up to an average 6.4 percent from 6.37 percent a week earlier, while the average 15-year fixed rate grew from 6.03 percent to 6.06 percent. Points, which are fees lenders charge for loan processing expressed as a percent of the loan, averaged 0.4 and 0.5, respectively, on the 30- and 15-year loans. Adjustable-rate mortgages (ARMs) also rose this week, with the average five-year Treasury-indexed hybrid ARM moving up to 6.12 percent from 6.11 percent and the one-year Treasury-indexed ARM jumping from 5.58 percent to 5.73 percent. Points on the five-year and one-year loans averaged 0.5 and 0.6, respectively. "Mortgage rates edged up this week following the release of the September employment figures," Frank Nothaft, Freddie Mac vice pres...