American Land Title Association
Home  >  News Room
News Room


SoftPro is the nation's leading provider of Real Estate Closing and Title Insurance software


Reversing Trend, Mortgage Rates Shoot Up This Week

September 26, 2008

Amidst market jitters, rates jumped higher this after falling for five consecutive week according to Freddie Ma's Primary Mortgage Market Survey® (PMMS®). The 30-year fixed-rate mortgage (FRM) rose to to an average 6.09 percent with an average 0.7 point for the week ending September 25, 2008, comapred to last week when it averaged 5.78 percent. Last year at this time, the 30-year FRM averaged 6.42 percent.

The 15-year FRM this week averaged 5.77 percent with an average 0.6 point, up from last week when it averaged 5.35 percent. A year ago at this time, the 15-year FRM averaged 6.09 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.02 percent this week, with an average 0.6 point, up from last week when it averaged 5.67 percent. A year ago, the 5-year ARM averaged 6.15 percent.

One-year Treasury-indexed ARMs averaged 5.16 percent this week with an average 0.5 point, up from last week when it averaged 5.03 percent. At this time last year, the 1-year ARM averaged 5.60 percent.

"Mortgage rates followed Treasury bond yields higher this week amid market uncertainty over the current state of the economy," said Frank Nothaft, Freddie Mac vice president and chief economist. "Compared with last Thursday, 10-year Treasury yields are up about 0.3 percentage points, and 30-year fixed-rate loans moved up about the same amount. And while up, interest rates for 30-year FRMs are still more than 0.5 percentage points below this year's peak of 6.63 percent set the week of July 24th.

"The latest housing information for the third quarter continues to show some softness in prices and sales activity. House prices fell 5.3 percent over the twelve months ending in July – weaker than the market consensus – according to the Federal Housing Finance Agency's purchase-only house price index. During August, the median sales price of existing single-family homes (excluding condominiums and co-ops) fell 9.7 percent in August over August 2007, the largest 12-month drop since records began in 1968, according the National Association of Realtors (NAR). Overall resales dipped by 2.2 percent between July and August, on a seasonally-adjusted basis.


The National Mortgage Rate Snapshop
This Week One Week Ago One Year Ago
30-Yr 15-Yr 5-Yr
ARM
1-Yr ARM
6.09 5.77 6.02 5.16
0.7 0.6 0.6 0.5
30-Yr 15-Yr 5-Yr
ARM
1-Yr ARM
5.78 5.35 5.67 5.03
0.6 0.6 0.6 0.5
30-Yr 15-Yr 5-Yr
ARM
1-Yr ARM
6.42 6.09 6.45 5.60
0.5 0.5 0.5 0.6

Source: Freddie Mac



Print Friendly


How To Find Us:
American Land Title Association
1828 L Street, NW, Suite 705
Washington, DC 20036-5104
P. 202.296.3671 F. 202.223.5843
www.alta.org
service@alta.org
Copyright © 2004-2014 American Land Title Association. All rights reserved.
SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment