Freddie: Mortgage Rates Rose Slightly This Week

October 22nd, 2009 10:48 PM

Rates Are Still Attractive

October 22nd, 2009 10:44 PM

Long-term mortgage rates remain near historically low levels, though rates snapped a three week stretch under 5 percent.

Freddie Mac says 30 year mortgages averaged 5 percent in the week ending Oct. 22, up from 4.92 percent last week. A year ago, 30 year mortgages averaged 6.04 percent.

The average rate on a 15 year fixed-rate mortgage was 4.43 percent this week, lower than the average rate on a one-year adjustable rate mortgage, at 4.54 percent.

"Following bond yields, long-term mortgage rates edged up slightly this week, says Freddie Mac chief economist Frank Nothaft. "Although rates for 5/1 ARMs and traditional 1-year ARMS are around a half percentage point below 30-year fixed mortgages, consumers appears to be seeking the stability of fixed-rate mortgages."

The Mortgage Bankers Association says adjustable rate mortgages averaged just six percent of the number of mortgage applications in September and October.

Mortgage applications also declined 14 percent last week. About two-thirds of all mortgage applications are currently from homeowners seeking to refinance existing mortgages.

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