Mortgage Rates Climb Higher During Budget Crisis

Mortgage rates moved higher leading up to the federal budget deadline this week, Freddie Mac reports in its latest mortgage market survey.

“Recent confidence measures depict some of the effects of the government shutdown and uncertainty of the budget impasse,” says Frank Nothaft, Freddie Mac’s chief economist. “However, despite these downturns in confidence, mortgage applications rose for the second consecutive week as of October 11th, elevated by increases in applications for refinancing."

Freddie Mac reports the following national averages for the week ending Oct. 17: 

• 30-year fixed-rate mortgages: averaged 4.28 percent, with an average 0.7 point, rising from last week’s 4.23 percent average. Last year at this time, 30-year rates averaged 3.37 percent. 
• 15-year fixed-rate mortgages: averaged 3.33 percent, with an average 0.7 point, rising from last week’s 3.31 percent average. Last year at this time, 15-year rates averaged 2.66 percent. 
• 5-year hybrid adjustable-rate mortgages: averaged 3.07 percent, with an average 0.4 point, rising from last week’s 3.05 percent average. A year ago, 5-year ARMs averaged 2.75 percent. 
• 1-year ARMs: averaged 2.63 percent, with an average 0.4 point, dropping from last week’s 2.64 percent average. Last year at this time, 1-year ARMs averaged 2.60 percent. 

Source: Freddie Mac