Thirty-Year Mortgage Rises for First Time Since June
Original Post Date: September 9, 2010
By: Amy Hoak
After weeks of falling, the average interest rate on a 30-year fixed-rate home mortgage rose slightly this week, according to Freddie Mac’s weekly survey of conforming mortgage rates, released on Thursday. And the average rate on a 15-year fixed-rate mortgage remained unchanged from last week.
“While overall employment was down in August, private nonfarm payrolls rose more than the market consensus forecast, and the prior two months’ employment figures were revised up,” said Frank Nothaft, vice president and chief economist at Freddie Mac, in a statement. “This somewhat sanguine report had a mixed effect on mortgage rates this week, with the 30-year fixed rate nudged up but the 15-year fixed rate unchanged.”
The rate on a 30-year fixed-rate mortgage averaged 4.35% for the week ended Sept. 9, up from 4.32% last week. It averaged 5.07% a year ago. It is the first time the mortgage rate has risen since the week ended June 17.
Meanwhile, the rate on a 15-year fixed-rate mortgage averaged 3.83%, remaining at its record low, set last week. The rate was 4.5% a year ago.
The rate on a five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.56%, down from 3.54% last week and 4.51% a year ago. The one-year Treasury-indexed ARM averaged 3.46%, down from 3.5% last week and 4.64% a year ago.
To obtain the rates, the 30-year fixed-rate mortgage and the one-year ARM required payment of an average 0.7 point, while the 15-year fixed-rate mortgage and the five-year ARM required payment of an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.