We all saw it coming. After last week’s Primary Mortgage Market Survey showed us the unmistakable image of a wolf, the prophecy has showed itself. The wolf was howling upward to indicate rates were going to rise this week, and the mortgage rate wolf was right. Rates have risen across the board, with the 30- and 15-year fixed rates roughly where they were two weeks ago. This is unfortunate for first time home buyers or those looking to refinance, but a good indicator for the U.S. economy and the fortune-telling future of line graphs. But because rates have risen, mortgage rate wolf has disappeared. Will he return? No one knows, but we’ll discuss the raw numbers from Freddie Mac in his memory.
30-year fixed-rate mortgage (FRM) averaged 4.57% with an average 0.7 point for the week ending September 5, 2013, up from last week when it averaged 4.51%. A year ago at this time, the 30-year FRM averaged 3.55%.
15-year FRM this week averaged 3.59% with an average 0.7 point, up from last week when it averaged 3.54%. A year ago at this time, the 15-year FRM averaged 2.86%.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.28% this week with an average 0.5 point, up from last week when it averaged 3.24%. A year ago, the 5-year ARM averaged 2.75%.
1-year Treasury-indexed ARM averaged 2.71% this week with an average 0.5 point, up from last week when it averaged 2.64%. At this time last year, the 1-year ARM averaged 2.61%.
There’s probably no room for mysticism in the mortgage world. Mortgage rates fluctuate based on multiple market conditions and that’s that. But I’ll keep watching and waiting for the return of the wolf as long as I need to. To bring some sanity into this report here’s Frank Nothaft, vice president and chief economist of Freddie Mac, with a quote on how rates changed this week.
“Mortgage rates edged up this week on signs of a stronger economic recovery. Real GDP was revised upwards to 2.5% growth in the second quarter of this year. In addition, residential construction spending rose for a ninth consecutive month in July. Lastly, the manufacturing industry expanded by the fastest pace in August since June 2011.”