Mortgage rates continued higher this week, marking the seventh consecutive weekly gain since mid-September, according to Freddie Mac’s weekly survey released today.
In Freddie Mac’s survey, the 30-year fixed-rate mortgage averaged 6.15 percent, with an average 0.5 point, for the week ended today, up from last week’s average of 6.1 percent. The average for the 15-year fixed-rate mortgage is 5.69 percent, with an average 0.5 point, up from last week when it averaged 5.65 percent.
The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 5.63 percent this week, with an average 0.6 point, up from last week when it averaged 5.59 percent. The one-year Treasury-indexed ARM averaged 4.91 percent, with an average 0.7 point, up from last week when it averaged 4.89 percent.
“Although home sales were still impressive in September, mortgage applications in October seem to be tapering off a bit, due in large part to slowly rising interest rates,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Obviously, refinancing is going to take the biggest hit as mortgage rates tick up. Refinancing comprised about 40 percent or more of the total volume of mortgage originations over the last 13 months. This share, however, will lessen as mortgage rates continue to rise.
“Going forward, homeowners wanting to use some of the equity in their homes for home improvement or other purposes will make up a larger portion of the refinance business.”
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