Mortgage Daily Logo
mortgage news from industry experts

Fixed Interest Rates on Home Loans Jump

Interest rates on residential loans turned higher this past week. The escalation came despite severe deterioration in monthly employment statistics.

Freddie Mac reported in its Primary Mortgage Market Survey for the week ended Oct. 12 that fixed interest rates on 30-year mortgages averaged 3.91 percent.

Long-term mortgage rates
jumped 6 basis points from the preceding seven-day period. The year-over-year increase was more severe at 44 BPS.

The ascension came as
a sharp reversal reported in monthly job growth by the Bureau of Labor Statistics was apparently anticipated in light of the recent hurricanes.

An alert from MBSQuoteline’s Joe Farr indicates prices on mortgage-backed securities have moved higher since Freddie conducted its survey, suggesting that mortgage rates have moved lower.

A Mortgage Daily analysis of Treasury market activity suggests mortgage rates likely won’t be much different in Freddie’s next survey, possibly a couple BPS lower.

Sixty-two percent of panelists surveyed by for the week Oct. 11 to Oct. 18 predicted rates won’t move more than 2 BPS over the next week. A decline was projected by 23 percent, and just 15 percent expected an increase.

Interest rates on jumbo mortgages were 12 BPS higher than conforming rates in the U.S. Mortgage Market Index report from Mortgage Daily and OpenClose for the week ended Oct. 6. Jumbo rates were 14 BPS higher than conforming rates in the prior week.

Fifteen-year fixed rates averaged 3.21 percent in today’s report from Freddie. Like the 30 year, the 15 year moved up 6 BPS compared to the previous survey. That left the spread between 15- and 30-year rates at 70 BPS.

A 2-basis-point decline left five-year, Treasury-indexed, hybrid adjustable-rate mortgages averaging 3.16 percent in Freddie Mac’s latest report.

Hybrid borrowers will be facing upward pressure on their rates based on the one-year Treasury note yield, which was reported by the Department of the Treasury at 1.41 percent, 6 BPS worse than
the preceding Thursday.

At 1.52 percent, the six-month London Interbank Offered Rate as of Wednesday was the same as seven days sooner, according to

The latest Mortgage Market Index report had ARM share at 9.7 percent, thinning considerably from 16.1 percent in the preceding report.

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