Housing Market

Average mortgage rates climb higher for first time in three weeks

Freddie MacData released last week by Freddie Mac showed that amid positive economic data, average mortgage rates climbed higher for the first time in three weeks.

“Fixed mortgage rates rebounded slightly this week on more positive economic data release,” Freddie Mac Chief Economist Frank Nothaft said. “Production in the manufacturing industry expanded for the fifth month in a row in October to the strongest pace since April 2011. Similarly, the non-manufacturing sector grew for the second consecutive month in October and beat the market consensus forecast of a decline. These increases were widespread across the nation, from Chicago to Milwaukee to New York.”

During the week of Nov. 7, the 30-year fixed-rate mortgage averaged 4.16 percent, up from 4.1 percent the week prior. The 15-year FRM averaged 3.27 percent, an increase from 3.2 percent last week.

The five-year ARM averaged 2.96 percent, relatively unchanged from the week before, and the one-year ARM averaged 2.61 percent—compared to 2.64 percent last week.

Rates have been on the decline since September, when the Federal Reserve announced it would continue its $85 billion-per-month bond-buying program as part of an effort to keep interest rates near zero, and slow hiring has led many analysts to expect the Fed to maintain the program early into next year, USA Today reports.

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