The Freddie Mac data on mortgage interest rates placed fixed rates higher for a second week in a row. Recent increases aren’t enough to discourage people who are actively prepared to buy a home. However, fencesitters are going to stay there. If mortgage rates were a major motivator to enter the housing market, these will be less so now, especially with greater concerns about a recession on the horizon. The wave of refinancings that greeted lower mortgage rates in the summer has dissipated.
The 30-year fixed rate was up 6 basis points to 3.75%, its highest since 3.75% in the August 31 week. For October to-date, the rate averaged 3.67%, up from 3.61% in September and its highest in four months and starting to move up from the three-year lows seen recently.
The 15-year fixed rate was up 3 basis points to 3.18%, its highest since 3.21% in the September 19 week. For October to-date, the rate averaged 3.13%, not much different from the 3.12% in September.
The rate for a 5/1-year ARM was up 5 basis points to 3.40% after being unchanged in the prior week. This is the highest since 3.49% in the September 19 week. The rate averaged 3.37% for October to-date, just below the 3.38% for September.
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