US mortgage rates rise to highest in almost 3 months

by Steve Randall on 25 Oct 2019

Mortgage rates south of the border have been edging higher recently but remain well below year-ago levels.

Freddie Mac said Thursday that for the week ending October 24, the 30-year fixed-rate mortgage (FRM) averaged 3.75%, the highest it’s been in 12 weeks. A week earlier it was 3.69%.

The 15-year FRM rate moved from an average 3.15% to 3.18% and the 5-year adjustable-rate mortgage (ARM) rate increased from 3.35% to 3.4%.

“The outlook for a favorable resolution to the trade dispute between the U.S. and China is still unclear, introducing some volatility into financial markets and the benchmark 10-year Treasury yield,” said Sam Khater, Freddie Mac’s Chief Economist. “Mortgage rates are following suit but are at near historic lows, while mortgage applications to purchase a home remain higher year over year.”

When compared to the same period of 2018 rates look favourable with the average 30-year FRM at 4.86% a year ago, the 15-year FRM rate at 4.29%, and the 5-year ARM rate at 4.14%.

Recent data from the Mortgage Bankers Association revealed an 11.9% decrease in mortgage applications with refinance activity down 17% for the week ending October 18 from the previous week.

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