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Thirty-Year Rate Jumps Back Up Above 4% Mark in One Week’s Time

The run for below-four-percent 30-year mortgage rates was short-lived. After a history-making drop to 3.94 percent last week, ""Freddie Mac"":http://www.freddiemac.com has recorded an 18 basis point jump in the average interest rate on a conventional fixed-rate mortgage with a 30-year term.


The GSE says the 30-year fixed-rate mortgage averaged 4.12 percent (0.8 point) for the week ending October 13, coming off last week's record low in which the 30-year rate dipped below the 4 percent mark for the first time ever. The 30-year rate is not too far off of levels since last year at this time, when it was averaging 4.19 percent.


The 15-year rate also leapt higher. Freddie's study puts the average 15-year fixed-rate mortgage at 3.37 percent (0.8 point) this week, up from 3.26 percent last week. A year ago at this time, the 15-year rate was averaging 3.62 percent.

The 5-year adjustable-rate mortgage (ARM) is now averaging 3.06 percent (0.6 point). That’s up from 2.96 percent last week. Roll the clock back 12 months, and the average rate for a 5-year ARM was 3.47 percent.

The 1-year ARM, which is tied to shorter-term Treasuries as opposed to the longer-term 10-year Treasury yields that influence fixed-rate movement, headed lower this week. Freddie reports the average rate for the 1-year ARM came in at 2.90 percent (0.6 point) this week, down from 2.95 percent last week. At this time last year, the 1-year ARM averaged 3.43 percent.

Save for the 1-year ARM, mortgage rates across the board rose sharply this week from the previous week’s record-setting lows. Freddie Mac attributes the sudden upward movement to the ""better-than-expected employment report"":http://dsnews.comarticles/us-economy-adds-103k-jobs-in-september-2011-10-07 last Friday, but the GSE stressed that even with the increases, mortgage rates remain near their 60-year lows.

Freddie Mac’s ""weekly rate survey"":http://www.freddiemac.com/pmms/ is based on data collected from about 125 lenders across the country.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.

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