Both the Mortgage Bankers Association (MBA) and Freddie Mac issued news that mortgage loan interest rates have gone up.
For the week ending Oct. 10, the average rate for a 30-year fixed rate loan rose to 6.47 percent from 5.99 percent the previous week. Points ranged 1.14 to 1.09, according to MBA. Freddie Mac announced that last year at this time, 30-year fixed rate loans had interest rates of 6.40 percent and that this week’s rate increase was the largest weekly jump since the week of April 17, 1987.
“Interest rates for 30-year fixed-rate mortgages rose this week to an 8-week high,” said Frank Nothaft, Freddie Mac vice president and chief economist. “ARM rates, which tend to be based on shorter-term benchmarks, showed smaller gains in part due to the Federal Reserve’s October 8 inter-meeting rate cut in the overnight lending rate.”
For a 15-year fixed rate loan: average rate was 6.17 percent, up from 5.71 percent, according to MBA.
For a 1-year adjustable rate mortgage loan (ARM): average rate rose to 6.67 from 6.60 percent, according to MBA. ARMs will vary depending on whether they are tied to the London InterBank Offered Rate or Treasury bills.
Mortgage loan application volume increased 5.1 percent for the week, according to MBA.
Oct. 16, 2008