Mortgage rates reach highest level in nearly 2 months

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The average rate on a 30-year fixed-rate mortgage climbed to its highest level in nearly two months on better-than-expected economic news, Freddie Mac reported.

Rates on 30-year fixed-rate mortgages averaged 4.35 percent with an average point of 0.7 for the week ending Nov. 14, up from 4.16 percent last week and 3.34 percent a year ago, according to Freddie Mac’s latest Primary Mortgage Market Survey.

The average rate on the 30-year fixed recorded this week was the highest since Sept. 19, according to Freddie Mac.

Rates on 15-year fixed-rate mortgages and five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans also increased, while rates on one-year Treasury-indexed ARMs stayed flat.

“Fixed mortgage rates increased this week following stronger-than-expected economic data releases,” said Frank Nothaft, vice president and chief economist at Freddie Mac. “Nonfarm payrolls increased by 204,000 in October, above the consensus forecast.”

“In addition, revisions added 60,000 additional jobs to the prior two month releases. Preliminary estimates indicate Real GDP growth in the third quarter was 2.8 percent, also above consensus.”

Source: Freddie Mac