30-Year Mortgage Rates Edge Up to 4.28%
Freddie Mac released its weekly update on national mortgage rates Thursday morning, and in what has to come as a bit of a surprise given all the turmoil in bond markets and credit ratings this month, the rates actually didn't go up much.
Thirty-year fixed-rate mortgages (FRMs) gained only five basis points over the past week to reach 4.28%, slightly below their levels of late last month. Fifteen-year FRMs tacked on two b.p., rising to 3.33%, likewise slightly below September levels.
Among adjustable-rate mortgage (ARMs), 5/1 ARMs rose two basis points to 3.07%. One-year ARMs dipped a single b.p. to 2.63%. In each case, these ARM interest rates were identical to their levels on September 26.
Commenting on the numbers, Freddie Mac Vice President and Chief Economist Frank Nothaft noted in a statement that rates "edged up" leading up to the federal budget deadline. "Recent confidence measures depict some of the effects of the government shutdown and uncertainty of the budget impasse," he said. "However, despite these downturns in confidence, mortgage applications rose for the second consecutive week as of Oct. 11, elevated by increases in applications for refinancing."
Perhaps it's most surprising that the most recent rate moves weren't more dramatic.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week.
Rates are likely to fall even lower now that Congress reached a deal to reopen the government and allow the Treasury to borrow normally until early February. Mortgage rates tend to follow the yield on the 10-year Treasury note. The 10-year note fell to 2.61% Thursday, down from 2.74% Tuesday.
-- Material from The Associated Press was used in this report.
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