Freddie Mac said mortgage rates were slightly higher during the week ending October 2, according to their weekly Primary Mortgage Market Survey.
Freddie Mac reported that the 30-year fixed-rate mortgage (FRM) averaged 5.03 percent for the week compared to an average rate of 5.0 percent a week earlier. Fees and points averaged 0.7 point both weeks.
The 15-year FRM average increased three basis points to an average of 4.46 percent. Fees and points were unchanged at 0.6 point.
The rate for five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) increased slightly to 4.42 percent from 4.40 percent with fees and points remaining at 0.6 point and the one-year Treasury-indexed ARM increased to 4.57 percent with 0.6 point from 4.54 percent, also with 0.6 point.
Frank Nothaft, Freddie Mac vice president and chief economist said "Interest rates for 30-year fixed mortgages have averaged just below 5 percent this year, which is the lowest 10-month average since the survey began in 1971. As a result, refinance activity has accounted for almost seven out of 10 mortgage applications on average, according to Freddie Mac's survey.
"Economic data release this week offered mixed signals as to the current state of the housing market. For example, total existing home sales jumped 9.4 percent to an annualized rate of 5.57 million homes in September, the strongest pace since July 2007, according to the National Association of Realtors®. However, new home sales unexpectedly fell 3.6 percent to 402,000 houses, the weakest since June of this year, based on figures from the Department of Commerce. Nonetheless, stronger housing demand has lowered the inventory of unsold existing homes in September to the lowest since January of this year and for new homes the lowest since November 1982, which should help stabilize falling house prices."
Earlier in the week Fannie Mae reported on its posted yields for the week ended October 23. All yields are quoted on a net basis and do not include servicing fees.
The yield for the 30-year FRM was 4.74 percent, down slightly from the 4.76 percent yield reported a week ago. The 15-year FRM also was down slightly to 4.12 percent from 4.13 percent. Government guaranteed FHA/VA loan yields were unchanged at 5.54 percent.
The one-year ARM also had a slightly lower yield of 2.91 percent compared to 3.0 percent during the week ended October 17.