Mortgage rates remained relatively flat this week as the market awaits Friday’s employment report, according to Freddie Mac’s weekly mortgage rates survey.
“Over the past two weeks, mortgage rates have remained fairly flat while Treasury yields have fallen and risen,” Freddie Mac Chief Economist Sean Becketti said. “This Friday’s jobs report will provide clarity on whether or not mortgage rates follow the recent upward trend in Treasury yields.”
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(Source: Freddie Mac)
The 30-year fixed-rate mortgage remained unchanged from last week at 3.42% for the week ending October 6, 2016. This is down from last year’s 3.76%.
The 15-year FRM also remained unchanged from last week at 2.72%, and down from last year’s 2.99%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage, however, decreased slightly to 2.81%. This is down from last week’s 2.81% and last year’s 2.88%.
“The 10-year Treasury yield leaped to a two-week high following reports of the European Central Bank retreating from its bond-buying program ahead of its initial March deadline,” Becketti said. “In contrast, the 30-year fixed-rate mortgage remained unchanged at 3.42%.”
Change in the 10-year Treasury is considered by some an indicator of the future direction of 30-year rates.