Long-term mortgage rates followed Treasury bond yields higher this week, bringing fixed-rate mortgages back up to levels seen two weeks ago, Freddie Mac said today.
The 30-year fixed-rate mortgage (FRM) averaged 6.46 percent with an average 0.7 point for the week ending Oct. 30, up from 6.04 percent a week ago and 6.26 percent a year ago, Freddie Mac said in releasing its weekly Primary Mortgage Market Survey.
The 15-year FRM this week averaged 6.19 percent with an average 0.7 point, up from 5.72 percent last week and 5.91 percent a year ago.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.36 percent this week with an average 0.7 point, up from 6.06 percent last week and 5.98 percent a year ago.
One-year Treasury-indexed ARMs averaged 5.38 percent this week with an average 0.6 point, up from 5.23 percent last week but down from 5.57 percent a year ago.
Although the Federal Reserve trimmed the discount rate and federal funds target rate by 0.5 percent Wednesday, the cuts in short-term interest rates were widely anticipated in the financial markets (see story).
Initial interest rates on ARMs, which tend to be set relative to other short-term rates, may remain near current levels, said Frank Nothaft, Freddie Mac vice president and chief economist.
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