It’s Thursday afternoon, so you know what that means – it’s time for this week’s expert and genius analysis of Freddie Mac’s weekly Primary Mortgage Market Survey.
On a scale of one to elementary school student finding out that there’s a snow day, I’m sure you’re probably sitting toward the latter.
What happened to our lovely mortgage rates this week? Is this week a better time to refinance than last week? Who knows? You’ll never know until you read on, so let’s take a look at this week’s numbers for nationwide averages.
30-year fixed-rate mortgages jumped up from last week’s 3.37% with 0.7 points to 3.41% with 0.7 points. If you remember correctly, 3.37% was just a smidge higher than a record low, so it looks like mortgage rates are on the way up for at least this week. Last year at this time, 30-year fixed-rate mortgages averaged 4.10%.
15-year fixed-rate mortgages ticked up from last week’s record low of 2.66% with 0.6 points to 2.72% with 0.6 points this week. Even though it was only a marginal increase, it’s still nice to say, “record-low mortgage rates” when you can, isn’t it? 12 months ago, 15-year fixed-rate mortgages averaged a whopping 3.38%.
ARMs barely budged over the course of the week, with 5/1-year ARMs standing pat at 2.75% with 0.6 points and 1-year ARMs dropping to 2.59% with 0.4 points from last week’s 2.60% with 0.4 points.
Last year at this time, 5/1-year ARMs and 1-year ARMs averaged 3.08% and 2.90%, respectively.
With mortgage rates being as directionless as my mother without her GPS, I’m sure Frank Nothaft, chief economist and vice president of Freddie Mac, will bless us with some incredible insight as he always does.
Do you think Frank is more of a Coca Cola guy or a Pepsi guy? Discuss it in the comment section.
This week, he explained, “Mortgage rates remained relatively unchanged this week and should continue to support the housing market and mortgage refinance. Existing home sales in September eased slightly to 4.75 million but was the second strongest annualized pace since May 2010. Moreover, new home sales rose to the most since April 2010. In addition, low rates and strong demand have already pushed the FHFA purchase-only home price index in August to its highest level (seasonally adjusted) since June 2010. And not surprisingly, the Federal Reserve in its October 24th monetary policy announcement acknowledged the further signs of improvement in the housing sector, albeit from a depressed level.”