Mortgage Interest Rate Report - October
Last Updated: 10/15/2014
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Mortgage Rates News & Analysis
Long-term mortgage interest rates took their sharpest upward turn of the year in September, according to mortgage finance company Freddie Mac, but rates are still well below their yearly highs.
During the first week, the average rate on the 30-year fixed rate mortgage (FRM) maintained the status quo, unchanged from the week before at 4.10 percent, excluding fees. The 15-year FRM slipped just slightly to an average rate of 3.24 percent from 3.25 percent while the one-year adjustable rate mortgage (ARM) inched up to 2.40 percent from 2.39 percent the previous week.
Not much changed the next week as the average rate on the 30-year FRM hovered up to 4.12 percent, the 15-year FRM moved up to 3.26 percent and the one-year ARM rose to 2.45 percent.
The middle of the month brought the most dramatic change, with the 30-year FRM rate jumping to 4.23 percent, the highest level in four-and-a-half months. The average rate on a 15-year FRM leaped to 3.37 percent. The one-year ARM fell to 2.43 percent.
"Fixed-rate mortgage rates rose this week following the increase in 10-year Treasury yields being partially fueled by market speculation the Federal Reserve might change its interest rate guidance,” commented Freddie Mac vice president and chief economist Frank Nothaft. “Meanwhile, the Labor Department reported that its Consumer Price Index declined 0.2 percent in August reflecting declines in energy prices. Excluding food and energy, the CPI was unchanged."
Rates slipped slightly during the last week. The average rate on a 30-year FRM fell to 4.20 percent and the 15-year FRM declined to 3.36 percent. The one-year ARM carried an average rate of 2.43 percent, unchanged from the previous week.
With international financial markets still struggling and little overly positive news here at home, mortgage rates are likely to stay low for another month. There may be some upward movement but probably no major jumps in October.