Mortgage Rates Popped Higher This Past Week

Freddie Mac reported in it's "Primary Mortgage Market Survey (PMMS)" that mortgage rates pushed significantly higher during this past week:

"... 30-year fixed-rate mortgage (FRM) averaged 6.46 percent with an average 0.6 point for the week ending October 16, 2008, up from last week when it averaged 5.94 percent. Last year at this time, the 30-year FRM averaged 6.40 percent. This week's increase of 52 basis points was the largest weekly increase since the week ending April 17, 1987, when the 30-year FRM rose 84 basis points.

The 15-year FRM this week averaged 6.14 percent with an average 0.6 point, up from last week when it averaged 5.63 percent. A year ago at this time, the 15-year FRM averaged 6.08 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.14 percent this week, with an average 0.6 point, up from last week when it averaged 5.90 percent. A year ago, the 5-year ARM averaged 6.11 percent.

One-year Treasury-indexed ARMs averaged 5.16 percent this week with an average 0.6 point, up from last week when it averaged 5.15 percent. At this time last year, the 1-year ARM averaged 5.76 percent."

Mortgage rate averages as noted by region:


Will we continue to see rising rates?

Report Shows Mortgage Apps Rise 5.1% Last Week

Lower interest rates in the beginning of the week looks to have initially spurred activity and refinance applicants while volatility and rising rates towards the end of the week brought the activity back to lower levels:

"'Treasury yields were extremely volatile last week,' said Orawin Velz, MBA's associate vice president of economic forecasting, in a news release. "The yield on the 10-year Treasury note -- the benchmark for the 30-year fixed mortgage rate -- moved up about 40 basis points over the course of the week.

'Lower yields earlier in the week appeared to have spurred refinance activity, which then faded as the week went on and rates began to rise.'

Overall, applications volume slumped 17% for the week ended Oct. 10 from the same week in 2007, the MBA said." - (MarketWatch)

Inside the mortgage numbers:

"The four-week moving average for all mortgages was down 7.9%, the MBA's latest survey showed. It covers about one half of all U.S. retail residential mortgage applications

Refinancings made up 46.4% of all mortgage applications filed last week, up from 43.4% the week before. Adjustable-rate mortgages also rose, accounting for 2.6% of all applications, up from 2.3%.

The rate charged on 30-year fixed-rate mortgages averaged 6.47% last week, up from 5.99% the week before, while 15-year fixed-rate mortgages had an average rate of 6.17% last week, up from 5.71%.

The rate on one-year ARMs averaged 6.67% last week, up from 6.60% the previous week." - (MarketWatch)