Mortgage Daily Logo
mortgage news from industry experts

Mortgage Rates Up 92 BPS From Year Ago

Over the past year, weekly fixed interest rates on single-family loans have soared 92 basis points. But little change was reported from last week, and more of the same is expected.

On conventional loans utilized to finance a home purchase with amounts up to the conforming mortgage limit of $453,100, thirty-year fixed rates averaged 4.77 percent during September.

Compared to the previous month, conforming interest rates slipped a single basis point. Mortgage rates have soared, however, 63 BPS from September 2017.

The monthly rate report was delivered by the Federal Housing Finance Agency based on a small survey of primary home lenders.

FHFA regulates Freddie Mac, which reported in its Primary Mortgage Market Survey for the seven days ended Oct. 25 that 30-year fixed rates averaged 4.86 percent. Long-term rates were a basis point more than last week.

A whopping 92-basis-point increase has been recorded versus the same week in 2017.

“We expect rates to continue to rise, which will put downward pressure on homebuying activity,” Freddie Mac Chief Economist Sam Khater said in the report.

Mortgage Daily’s analysis of Treasury market activity indicates that 30-year fixed rates won’t be much different in Freddie’s next survey, maybe a basis point or two lower.

Nearly half of panelists surveyed by for the week Oct. 24 to Oct. 30 predicted mortgage rates will decrease at least 3 BPS over the next week. An increase was forecasted by 31 percent, and no change was expected by just 23 percent.

Interest rates on conforming mortgages were 3 BPS less than jumbo rates, according to the U.S. Mortgage Market Index report from Mortgage Daily and OpenClose for the seven days ended Oct. 19. The spread swung from the prior week, when jumbo rates were 3 BPS less than conforming rates

The survey from Freddie had 15-year fixed rates rising 3 BPS from the week ended Oct. 18 to 4.29 percent. The latest movement left 15-year rates 57 BPS less than 30-year rates. The spread thinned from 59 BPS in last week’s report.

Freddie reported five-year, Treasury-indexed, hybrid adjustable-rate mortgages at 4.14 percent, 4 BPS more than a week ago.

The index for hybrid ARMs, the yield on the one-year Treasury note, closed today at 2.47 percent, the same as last Thursday, according to Treasury Department data.

At 2.75975 percent, the London Interbank Offered Rate as of Wednesday was higher than 2.66138 percent seven days earlier, The Wall Street Journal reported.

Eventually replacing LIBOR will be the
Secured Overnight Financing Rate, which the Federal Reserve Bank of New York reported at 2.18 percent as of yesterday, no different than the preceding Wednesday.

ARM share in the latest Mortgage Market Index report was 16.4 percent, thinning from 19.3 percent the previous week.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts