Fixed mortgage rates up sharply

mortgagerates

Rates on conforming 30-year, fixed-rated mortgages (FRM) rose sharply to an average 4.12 percent, the week ending Oct. 13, 2011, up from the record low 3.94 percent last week.

FRM rates remain among the most affordable on record.

“An employment report that was better than market expectations helped to lift long-term Treasury bond yields and mortgage rates as well,” said Frank Nothaft, vice president and chief economist at Freddie Mac.

The average 30-year rate came with an average 0.8 percent point. The rate was 4.19 percent a year ago, according Freddie Mac’s weekly Primary Mortgage Market Survey.

The average on the 15-year fixed rate, a popular refinancing tool, also rose to 3.37 percent this week, with an average 0.8 percent, up from 3.26 percent last week, but down from 3.62 percent a year ago.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.06 percent this week, with an average 0.6 point, up from last week’s 2.96 percent average. The 5-year ARM averaged 3.47 percent a year ago.

Freddie Mac reported the 1-year Treasury-indexed ARM sank to an average 2.90 percent this week with an average 0.6 point, down from 2.95 percent last week. The 1-year ARM averaged 3.43 percent last year at this time.

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