Freddie Mac, Bankrate: Mortgage rates move higher
By Palm Beach Business.com
DELRAY BEACH — Long-term mortgage rates nudged higher in the Freddie Mac survey while Bankrate.com found them moving up at a somewhat more vigorous pace.
Freddie Mac’s Primary Mortgage Market Survey found the 30-year fixed-rate mortgage averaging 4.23 percent with 0.8 point, up from 4.21 percent a week earlier. Two weeks ago, the 30-year set a record low of 4.19 percent.
Bankrate found the 30-year averaging 4.51 percent with 0.33 point, up from 4.42 percent a week earlier
Said Freddie Mac Chief Economist Frank Nothaft: "Mixed economic data releases left mortgage rates little changed this week. Consumer confidence increased slightly in October, according to The Conference Board , but still remains at low levels. Based on the S&P/Case-Shiller 20-city composite index, house prices fell 0.3 percent between July and August, while the purchase-only index by the Federal Housing Finance Agency showed a 0.4 percent gain over the same period.”
Said Bankrate: While the Federal Reserve is poised to announce renewed efforts to boost the economy, it doesn't automatically mean lower mortgage rates. Investors tempering their expectations were behind the increase seen this week and if inflation worries increase once specifics of the Fed's bond-buying are announced, mortgage rates could continue moving higher. Time will tell just what impact the Fed has on mortgage rates and the overall economy.
Freddie Mac also found short-term rates at record lows. The 5-year adjustable rate mortgage dropped to 3.41 percent with 0.6 point, while the 1-year ARM sat at 4.57 percent with 0.7 point, tying last week’s record.
Bankrate’s panel of mortgage experts overwhelmingly sees rates moving up over the next week, while a minority sees them treading water. Only 6 percent see a decline.
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