Mortgage rates climbed for the second consecutive week on news of October job gains, according to Freddie Mac’s weekly mortgage survey.
Freddie Mac reported that the 30-year fixed-rate mortgage averaged 5.76 percent for the week ended today, up from last week when it averaged 5.7 percent. The average for the 15-year fixed-rate mortgage this week is 5.16 percent, also up from last week when it averaged 5.08 percent. Points on both the 30- and 15-year averaged 0.7.
One-year Treasury-indexed adjustable-rate mortgages averaged 4.16 percent this week, with an average 0.6 point, up from last week when they averaged 4 percent.
“October’s fervent job growth statistics, mixed with upward revisions in previous months, led financial markets to believe the economy is picking up steam. A large number of people re-entered the workforce, leading to an uptick in the national unemployment rate to 5.5 percent, which we expect will ease back to 5.4 percent before the year is out,” said Freddie Mac Vice President and Chief Economist Frank Nothaft.
“The end result translates into higher long-term mortgage rates this week. Adjustable-rate mortgages were more strongly affected by the latest Federal Reserve rate hike this week. However, mortgage rates continue to be extremely affordable and the outlook for the housing sector appears bright.”
The following is a sampling of Bankrate’s average 30-year-mortgage interest rates this week in some U.S. metropolitan areas.
New York – 5.78 percent with 0.16 point
Los Angeles – 5.78 percent with 0.56 point
Chicago – 5.87 percent with 0.1 point
San Francisco – 5.78 percent with 0.41 point
Philadelphia – 5.72 percent with 0.23 point
Detroit – 5.75 percent with 0.25 point
Boston – 5.87 percent with no points
Houston – 5.7 percent with 0.67 point
Dallas – 5.74 percent with 0.42 point
Washington, D.C. – 5.66 percent with 0.53 point
***
What’s your opinion? Send your Letter to the Editor to opinion@inman.com.
