After a still summer, mortgage rates took a sharp upward turn in the last week as the financial markets waited for word on the Federal Reserve's next steps [1] in monetary policy.
Freddie Mac [2] released Thursday the results of its latest Primary Mortgage Market Survey [3], showing the interest rate on the 30-year fixed-rate mortgage (FRM) jumping more than 10 basis points to an average 4.23 percent (0.5 point), the highest level since the start of May. It was the biggest one-week gain so far this year.
A year ago, the 30-year FRM sat at an average 4.50 percent.
The 15-year FRM averaged 3.37 percent (0.5 point) for the week, up from 3.26 percent in the previous survey.
"Fixed-rate mortgage rates rose this week following the increase in 10-year Treasury yields being partially fueled by market speculation the Federal Reserve might change its interest rate guidance," said Frank Nothaft, VP and chief economist at Freddie Mac.
Adjustable rates moved modestly during the week, with the 5-year adjustable-rate mortgage (ARM) averaging 3.06 percent (0.5 point) and the 1-year ARM averaging 2.43 percent (0.4 point).