Inflation Jitters Push Mortgage Rates Up In Freddie Mac's Primary Mortgage Market Survey
October 13, 2006
McLean, VA – Results of Freddie Mac Primary Mortgage Market Survey® (PMMSSM) found that the the 30-year fixed-rate mortgage (FRM) averaged 6.37 percent with an average 0.5 point for the week ending October 12, 2006, up from last week when it averaged 6.30 percent. Last year at this time, the 30-year FRM averaged 6.03 percent.
The 15-year FRM this week averaged 6.06 percent with an average 0.5 point, up from last week when it averaged 5.98 percent. A year ago, the 15-year FRM averaged 5.62 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.10 percent this week, with an average 0.6 point, up from last week when it averaged 6.00 percent. A year ago, the five-year ARM averaged 5.57 percent.
One-year Treasury-indexed ARMs averaged 5.56 percent this week with an average 0.7 point, up from last week when it averaged 5.46 percent. At this time last year, the one-year ARM averaged 4.85 percent.
"Renewed concern that inflation is still an issue put some upward pressure on bond yields, which generally translates into higher interest and mortgage rates," said Frank Nothaft, Freddie Mac vice president and chief economist. "ARM rates especially felt the weight of increased inflation fears, narrowing the gap between ARMs and fixed-rate mortgage rates. Thus, ARMs may become less desirable."
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