Freddie Mac's weekly survey
of conforming mortgages showed that the average interest rate on a 30-year fixed-rate jumped this week to its highest level since June.
The average rate on a 30-year mortgage now stands at 4.61 percent, up from 4.46 percent from last week, according to the survey. This figure also marks the fourth week in a row that the mortgage rate jumped. The interest rate for a 15-year fixed-rate loan also rose 3.96 percent, up from last week's 3.81 percent, according to the survey.
These rate increases are problematic because it means a higher monthly payment price for conventional loans, which is not good news for people who were looking for affordable relocation. Frank Nothaft, Freddie Mac's chief economist, says, "Interest rates for 30-year fixed mortgages are now almost a half percentage point higher than the record low set in mid-November, which for a $200,000 conventional loan amounts to $50 more in monthly payments."
More results from the survey showed that adjustable-rate mortgages are higher, as 5-year adjustable-rate mortgages are averaging 3.6 percent, up from 3.49 percent last week. Also, 1-year ARMs averaged 3.27 percent, up from 3.25 percent last week.
Despite low rates, sales have been slow. The National Association of Realtors
revealed that in October single-family homes sold at an annual rate of 3.89 million, down from a pace of 3.97 million in September.