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Mortgage

Mortgage rates continue upward momentum

Solid economic data pushes 30-year FRM to two-month high

Fixed mortgage rates edged higher for the second week in a row on stronger than expected economic data, specifically the jobs report that shocked the market.

More importantly, the 30-year fixed-rate mortgage reached its highest level since September, when it averaged 4.32%.

The 30-year FRM came in at 4.35%, up from 4.16% last week, and also up from 3.34% last year, Freddie Mac said in its Primary Mortgage Market Survey.

"Fixed mortgage rates increased this week following stronger than expected economic data releases," said Freddie Mac vice president and chief economist Frank Nothaft.  

He added, "Nonfarm payrolls increased by 204,000 in October, above the consensus forecast. In addition, revisions added 60,000 additional jobs to the prior two-month releases. Preliminary estimates indicate real GDP growth in the third quarter was 2.8 percent, also above consensus."

The 15-year, FRM increased 3.35%, up from 3.27% last week and a steep rebound from 2.65% last year.

Meanwhile, the 5-year Treasury-index adjustable-rate mortgage averaged 3.01%, up from 2.96% last week, and an increase from 2.55% a year ago.

Additionally, the 1-year Treasury-index ARM came in at 2.61%, unchanged from last week, dropping from 2.55% a year earlier.

Similarly, Bankrate attributed the two-month high to a better than expected employment report powered mortgage rates higher this week, further vanquishing any lingering worries about a government shutdown-induced economic slowdown.

Bankrate’s 30-year FRM rose to 4.48% from 4.35% a week earlier.

Additionally, the 15-year, FRM increased to 3.49%, up from 3.42%, while the 5/1 ARM rose to 3.33%, up from 3.25%. 

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