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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.

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