Mortgage rates reverse 12-week downturn, 30-year FRM rises to 4.35%
After 11 consecutive weeks of record lows, the 30-year fixed-rate mortgage (FRM) increased 3 basis points for the week ending Sept. 9 to 4.35% with an average 0.7 point, according to the Freddie Mac Primary Mortgage Market survey. Last week's 4.32% was the lowest rate the survey recorded since its inception in 1971. While the rate this week did increase for the first time in nearly three months, it remains below the 5.07% level seen last year. The current Freddie Mac survey showed a 2 bps increase in the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) to 3.56% with an average 0.6 point. But the average rate on the 15-year FRM remained at the record low of 3.83% with an average 0.6 point. The 1-year Treasury-indexed ARM dropped 4 bps to 3.46% with an average 0.6 point. Frank Nothaft, vice president and chief economist at Freddie Mac, said while overall employment did drop in August, private non-farm payrolls increased more than the market forecast. "This somewhat sanguine report had a mixed effect on mortgage rates this week, with the 30-year fixed rate nudged up but the 15-year fixed rate unchanged," Nothaft said. The Bankrate survey of large banks and thrifts reported the average rate for a 30-year FRM at 4.58%, a 5 bps increase from last year. The 15-year FRM increased, too, according to Bankrate, by 1 bps to 4.06%. The benchmark 5/1 adjustable-rate mortgage increased 5 bps to 3.91%. Write to Jon Prior.