Lawmakers’ Eleventh Hour Budget Deal Lifts Mortgage Rates

Mortgage rates broke their streak of declines this week, climbing as the federal budget deadline approached.

Freddie Mac released Thursday its weekly Primary Mortgage Market Survey, showing the average 30-year fixed rate at 4.28 percent (0.7 point) for the week ending October 17, up from 4.23 percent last week. A year ago at this time, the 30-year fixed averaged 3.37 percent.

The 15-year fixed rate was an average 3.33 percent (0.7 point), up from 3.31 percent previously.

The story was a bit different for adjustable rates. While the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was up—increasing to 3.07 percent (0.4 point)—the 1-year ARM was down, averaging 2.63 percent (0.4 point) from 2.64 percent last week.

Bankrate.com’s weekly national survey—released on Wednesday, a day ahead of its usual schedule—recorded the average 30-year fixed rate at 4.42 percent, an increase from 4.39 percent. The 15-year fixed rate averaged 3.49 percent, also up.

Meanwhile, the 5/1 ARM experienced a decline, dropping to 3.31 percent.

As has been the case over the last several weeks, rate movements this week were influenced mostly by the unfolding drama in Washington, which was finally resolved Wednesday.

“The potential drag from the government shutdown and looming debt ceiling deadline had pulled rates lower in recent weeks, but hopes that a deal could be in the works eased those concerns late last week,” Bankrate said in a release.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s