Mortgage rates climbed higher for a third straight week according to mortgage financier Freddie Mac; fortunately, they’ve been moving at a snail’s pace.
The popular 30-year fixed averaged 5.03 percent for the week ending October 29, up from 5.00 percent last week, but well below the 6.46 percent average seen a year earlier.
The 15-year fixed displayed similar movement, rising to 4.46 percent from 4.43 percent, while remaining nowhere near the 6.19 percent average of a year ago.
Adjustable-rate mortgages joined the party, with the five-year ARM climbing to 4.42 percent from 4.40 percent, and the one-year ARM rising to 4.57 percent from 4.54 percent.
Last year, the five-year averaged 6.36 percent and the one-year stood at 5.38 percent, so all things considered, mortgage rates are still very attractive.
“Economic data released this week offered mixed signals as to the current state of the housing market,” said Frank Nothaft, Freddie Mac chief economist.
“For example, total existing home sales jumped 9.4 percent to an annualized rate of 5.57 million homes in September, the strongest pace since July 2007, according to the National Association of Realtors®.”
“However, new home sales unexpectedly fell 3.6 percent to 402,000 houses, the weakest since June of this year, based on figures from the Department of Commerce.
Nothaft noted that demand has pushed the inventory of unsold existing homes to its lowest level since January, while new home supply is at its lowest point since November 1982.
Of course, it’s more complicated than that, as there are millions of sold properties (that probably shouldn’t have sold) that could quickly become part of the REO supply (shadow inventory) before you know it.
The interest rates above are good for mortgages with conforming loan amounts at 80 percent loan-to-value; they are at the par rate without pricing adjustments.
Jumbo loans continue to price a percentage point or so higher.
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