Better jobs numbers push mortgage rates higher, Bankrate survey finds

NORTH PALM BEACH — The Labor Department’s better-than-expected jobs report helped push mortgage rates higher, according to Bankrate.com.

The average conforming 30-year fixed mortgage rate climbed to 6.5 percent, according to Bankrate.com's weekly national survey of large lenders released Thursday.

Last week, mortgages were at 6.42 percent.

The average 15-year, fixed-rate mortgage increased by the same amount, to 6.18 percent. The average jumbo 30-year fixed rate inched lower to 7.27 percent.

Adjustable mortgage rates increased as well, with the average one-year ARM nosing higher 6.14 percent, and the average 5/1 ARM jumping to 6.37 percent.

Bankrate cites the September jobs report as the catalyst for the increase. Mortgage rates moved higher after the report showed the labor market wasn't nearly as dire as the previous month's report indicated.

The Labor Department initially reported a job loss for August, but revised numbers released with the September showed tepid growth of 89,000 jobs. The July payroll number also was revised higher by 25,000 jobs.

The better-than-expected job growth the Federal Reserve’s rate-setting Open Market Committee some breathing room when it meets at the end of the month. The Fed remains coy about the direction it will take at the meeting.

Fixed mortgage rates remain the most attractive option for borrowers. Three months ago, the average 30-year fixed mortgage rate was 6.78 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,301.19.

Now that the average conforming 30-year fixed rate is 6.5 percent, the same $200,000 loan carries a monthly payment of $1,264.14.

Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

For a full analysis of this week's move in mortgage rates, go to http://www.bankrate.com/mortgagerates.