Industry NewsMortgage

Mortgage rates spike on market turmoil

Biggest weekly increase in 21 years

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Rates on traditional fixed-rate mortgages saw their largest one-week increase in more than 20 years this week, shooting back well above 6 percent on continued volatility in markets for investments such as Treasurys and bonds that finance mortgages.Rates for 30-year fixed-rate mortgages hit at an eight-week high, averaging 6.46 percent with an average 0.6 point for the week ending Oct. 16, Freddie Mac said in its weekly Primary Mortgage Market Survey.That compares with 5.94 percent a week ago and 6.4 percent a year ago. The 52-basis-point increase in the average rate for a 30-year fixed-rate mortgage was the largest weekly increase since April 1987, when it rose 84 basis points, Freddie Mac said.The 15-year fixed-rate mortgage jumped 51 basis points from a week ago, averaging 6.14 percent with an average 0.6 point, up from 5.63 percent last week and 6.08 percent a year ago.Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) also jumped back above 6 percent, averaging 6.14...