Mortgage Interest Rates Rise Sharply After Jobs Report

October 13, 2011 (Shirley Allen)

The effects of the Federal Reserve’s latest economic maneuver were overshadowed by a stronger than expected jobs report last week pushing Treasury yields and mortgage rates higher according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS).

Fixed Rate Mortgages (FRM):

FRM interest rates jumped sharply last week with the 30 year FRM averaging 4.12 percent with an average of 0.8 points, up from last week’s average of 3.94 percent. The 30 year FRM averaged 4.19 percent a year earlier.

The 15 year FRM averaged 3.37 percent this week with an average of 0.8 points, up from 3.26 percent reported the previous week, and down from 3.62 percent a year ago.

Adjustable Rate Mortgages (ARM):

ARM interest rates were mixed again this week with the 5-year Treasury-indexed hybrid ARM averaging 3.02 percent, up from 2.96 percent last week, with an average of 0.6 points. The 5 year ARM averaged 3.47 percent a year earlier.

The 1-year Treasury-indexed ARM decreased this week, averaging 2.90 percent with an average of 0.6 points, down from 2.95 percent the previous week. A year ago, the 1 year ARM averaged 3.43 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “An employment report that was better than market expectations helped to lift long-term Treasury bond yields and mortgage rates as well. The economy added 103,000 workers in September, aided by the return of striking Verizon workers. In addition, revisions to July and August figures added a total of 99,000 jobs to payrolls. However, these job gains are still not large enough to bring down the current unemployment rate of 9.1 percent.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 4.12 4.12 4.17 4.08 4.15 4.09
Fees & Points 0.8 0.9 0.9 0.6 0.8 0.9

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.37 3.37 3.37 3.33 3.43 3.36
Fees & Points 0.8 0.9 1.0 0.6 0.9 0.9

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 3.06 3.12 3.03 3.19 3.06 2.94
Fees & Points 0.6 0.7 0.6 0.4 0.7 0.7
Margin 2.74 2.75 2.75 2.73 2.76 2.73

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.90 2.90 2.84 3.45 2.71 2.70
Fees & Points 0.6 0.8 0.6 0.4 0.6 0.5
Margin 2.76 2.79 2.75 2.73 2.77 2.75

The National Mortgage Rate Snapshot One Year Ago One Week Ago
  30-YR 15-YR 5/1-YR 1-YR ARM 30-YR 15-YR 5/1-YR 1-YR ARM
Average 4.19   3.62   3.47   3.43   3.94   3.26   2.96   2.95  
Fees & Points 0.8   0.7   0.6   0.8   0.8   0.8   0.6   0.5  
Margin N/A N/A 2.74   2.76   N/A N/A 2.75   2.76  

Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates, 5-year hybrid, 1-year treasury

Source:
Freddie Mac