Inflation Fears Push Mortgage Rates Up For Third Week In A Row

September 30, 2005

Future Rates May Depend on September Jobs Report on Hurricane's Effects

McLean, VA – The Freddie Mac (NYSE:FRE) Primary Mortgage Market SurveySM (PMMSSM) found that the 30-year fixed-rate mortgage (FRM) averaged 5.91 percent, with an average 0.5 point, for the week ending September 29, 2005, up from last week when it averaged 5.80 percent. Last year at this time, the 30-year FRM averaged 5.72 percent.

The average for the 15-year FRM this week is 5.48 percent, with an average 0.5 point, up from last week when it averaged 5.37 percent. A year ago, the 15-year FRM averaged 5.12 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.44 percent this week, with an average 0.5 point, up from last week when it averaged 5.31 percent. There is no annual historical information for last year since Freddie Mac only began tracking this mortgage rate at the start of this year.

One-year Treasury-indexed ARMs averaged 4.68 percent this week, with an average 0.6 point, up slightly from last week when it averaged 4.48 percent. At this time last year, the one-year ARM averaged 3.97 percent.

Freddie Mac chief economist Frank Nothaft said "this past week's increase in mortgage rates reflects market anxieties over inflationary pressures, energy price increases, and slipping consumer confidence. Taken together these developments suggest less personal spending during the last quarter of the year and additional upward pressure on mortgage rates."

"Looking ahead, next week's employment report for September will provide a critical indicator of the economic effects of the recent hurricanes. If that report confirms the market's expectation for only a slight bump in the unemployment rate and overall job losses of around 200,000 personnel, mortgage rates may not rise much more through the end of the year."

The National Mortgage Rate Snapshop
This Week One Week Ago One Year Ago
30-Yr 15-Yr 5-Yr
1-Yr ARM
5.91 5.48 5.44 4.65
0.5 0.5 0.5 0.6
30-Yr 15-Yr 5-Yr
1-Yr ARM
5.80 5.37 5.31 4.48
0.6 0.7 0.8 0.7
30-Yr 15-Yr 5-Yr
1-Yr ARM
5.72 5.12 --- 3.97


0.6 0.6


Source: Freddie Mac

Contact ALTA at 202-296-3671 or

SoftPro, based in Raleigh, NC, offers a mature suite of products, designed specifically for the closing and title industry. Our mission is to serve our client base, with best-in-class products and services. Our products are modular so we don't force you to buy anything you don't need. You can always add on as your business grows. Unlike other software companies, we view the sale as the beginning of the relationship rather than the end. North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents.