US Mortgage Rates Rise Slightly

Freddie Mac (NYSE:FRE) yesterday released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.34 percent with an average 0.5 point for the week ending September 20, up from last week when it averaged 6.31 percent.  Last year at this time, the 30-year FRM averaged 6.40 percent.

The 15-year FRM this week averaged 5.98 percent with an average 0.5 point, up slightly from last week when it averaged 5.97 percent.  A year ago, the 15-year FRM averaged 6.06 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.21 percent this week, with an average 0.5 point, up from last week when it averaged 6.17 percent.  A year ago, the 5-year ARM averaged 6.08 percent. 

One-year Treasury-indexed ARMs averaged 5.65 percent this week with an average 0.6 point, down slightly from last week when it averaged 5.66 percent.  At this time last year, the 1-year ARM averaged 5.54 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

“Mortgage rates were largely unchanged in the previous week, with long-term rates lingering at lower levels not seen since May,” said Frank Nothaft, Freddie Mac vice president and chief economist.  “The recent retreat in mortgage rates has brought in an increased volume of mortgage applications, according to the Mortgage Bankers Association, and pushed the share of applications for refinancing to the highest rate since April.

“On Tuesday, the Fed announced a half-percentage-point cut to the Fed funds rate. In addition to bringing down short-term interest rates, the cut should also dissipate some of the volatility in short-term interest rates we observed earlier.”