Fixed mortgage rates crawled higher this week amid the federal budget deadline and debt ceiling debacle.
As Congress approached the 11th hour Wednesday night, both sides of the aisle were able to come to an agreement to end the shutdown and avoid a government default, but leaving the mortgage market slightly shaken.
The 30-year, fixed-rate mortgaged came in at 4.28%, up from 4.23% last week and also up from 3.37% last year, Freddie Mac said in its Primary Mortgage Market Survey.
“Recent confidence measures depict some of the effects of the government shutdown and uncertainty of the budget impasse,” said Freddie Mac vice president and chief economist Frank Nothaft.
He added, “For instance, consumer sentiment in October fell for the second straight month to the lowest reading since January, according to the University of Michigan. However, despite these downturns in confidence, mortgage applications rose for the second consecutive week as of October 11th, elevated by increases in applications for refinancing.”
The 15-year, FRM increased to 3.33%, up from 3.31% last week and da steep rebound from 2.66% last year.
Meanwhile, the 5-year Treasury-index adjustable-rate mortgage averaged 3.07%, up from 3.05% last week and an increase from 2.75% a year ago.
Additionally, the 1-year Treasury-index ARM came in at 2.63%, down from 2.64% last week, but up from 2.60% a year earlier.
The economic drag from the federal freeze and debt ceiling uncertainty pulled rates lower in recent weeks, but hopes of a Congressional compromise this week eased concerns, according to Bankrate.
As a result, mortgage rates ticked up.
Bankrate’s 30-year FRM rose to 4.42% from 4.39% a week earlier.
Additionally, the 15-year, FRM increased to 3.49%, up from 3.47%, while the 5/1 ARM rose to 3.31%, up from 3.34%.