Mortgage rates jumped this week, as the average rate for a 30-year fixed-rate mortgage rose to 6.32%, up from 6.12% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
“Following the release of a stronger-than-expected September jobs report, the 30-year fixed rate mortgage saw the largest one-week increase since April,” says Sam Khater, chief economist for Freddie Mac, in a statement. “However, we should remember that the rise in rates is largely due to shifts in expectations and not the underlying economy, which has been strong for most of the year. Although higher rates make affordability more challenging, it shows the economic strength that should continue to support the recovery of the housing market.”
The average rate for a 15-year fixed-rate mortgage was 5.41%, up from 5.25% last week but down from 6.89% a year ago.
Yesterday the Mortgage Bankers Association reported that mortgage application volume fell 5.1% last week as rates went back on the rise.
Photo: Bikram Sharma