After jumping up two weeks ago, and then dropping almost as much the next week, national average rates rose again this past week.
Freddie Mac reports a jump in the 30-year fixed mortgage rate to 6.46% during the week ended Oct. 30 from 6.04% the prior week, as long-term mortgages rates moved in line with long-term Treasury bonds. The 15-year fixed mortgage rate rose as well, climbing to 6.19% from 5.72%. Meanwhile, the five-year hybrid adjustable mortgage rate moved up to 6.36% from 6.06%; and the one-year ARM increased to 5.38% from 5.23%.
Freddie Mac chief economist Frank Nothaft expects short-term rates to remain low due to the Federal Reserve’s recent cut in the discount and federal-funds rates, and he notes that falling home prices have jump-started residential sales in some markets by making properties more affordable.
Commercial real estate sales have begun to slump as well due to an even tighter commercial credit market.
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