Mortgage rates surged to their highest point in eight weeks as spreads between mortgage rates and Treasury yields widened, according to the latest weekly survey from mortgage financier Freddie Mac.
The average 30-year fixed-rate mortgage shot up to 6.46 percent for the week ending October 16, after averaging 5.94 percent a week earlier, and now sits above the 6.40 percent level seen a year ago.
The 15-year was just as nasty, jumping to 6.14 percent from 5.63 percent, inching above its year-ago average of 6.08 percent.
The five-year ARM averaged 6.14 percent, up from 5.90 percent a week ago and 6.11 percent a year earlier.
The one-year ARM was the only real winner, if you want to call it that, rising just a single basis point to 5.16 percent, and still much lower than the 5.76 percent average seen a year ago.
Freddie’s weekly survey uses data from conforming mortgages with a loan-to-value of 80 percent, and as well all know, not all borrowers come in with 20 percent down.
Meanwhile, Bankrate said mortgage rates posted their biggest increase since April 1987, with the 30-year surging to 6.74 percent from 6.20 percent.
The 15-year fixed climbed to 6.40 percent from 5.95 percent, and the five-year ARM averaged 6.61 percent, up from 6.21 percent last week.
The average 30-year jumbo increased to 7.87 percent, up from 7.61 percent the previous week.
Next stop could be 7 percent for the conforming stuff.
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(photo: spine)
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