Mortgage rates edge up on job growth report
WASHINGTON — Rates on 30-year mortgages edged up slightly this week following a better-than-expected report on job growth.
Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.40 percent this week, up from 6.37 percent last week.
In mid-September, the nationwide average for 30-year mortgages had dipped to 6.31 percent, the lowest level since May 17.
Analysts attributed this week’s rise in mortgage rates to a better-than-expected jobs reports showing that the economy created a solid 110,000 jobs in September and, even more significantly, a drop of 4,000 jobs in August was revised away. New data showed the economy actually created a respectable 89,000 jobs in August.
Frank Nothaft, chief economist at Freddie Mac, said the slight rise in rates this week also reflected a feeling in bond markets that future rate cuts by the Federal Reserve are less certain. Nothaft said investors now see about a 30 percent chance of a quarter-point rate cut at the Fed’s next meeting on Oct. 30-31, down from a 50 percent likelihood before the release of the minutes of the Fed’s September meeting, where the central bank had cut rates for the first time in four years.
Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, averaged 6.06 percent this week, up from 6.03 percent last week.
Rates on five-year adjustable rate mortgages averaged 6.12 percent, up from 6.11 percent last week. One-year ARMs averaged 5.73 percent, up from 5.58 percent.
The mortgage rates do not include add-on fees known as points. Thirty-year mortgages carried a nationwide average fee of 0.4 point while 15-year and five-year mortgages both carried an average fee of 0.5 point. One-year adjustable-rate mortgages had an average fee of 0.6 point.
A year ago, 30-year mortgages stood at 6.37 percent, 15-year mortgages were at 6.06 percent, five-year ARMS averaged 6.10 percent and one-year ARMs were at 5.56 percent.
After a five-year boom, sales of both new and existing homes fell sharply last year and the housing slump has gotten worse this year as soaring foreclosure rates have dumped more houses on already glutted markets.
Meetings
Commercial real estate riches will be the topic of the Oct. 25 meeting of the Real Estate Association of Puget Sound. Jason Gilbert and Terry Hale, hosts of a weekly talk show on the topic are featured speakers. The meeting starts at 7 p.m. at the University of Washington’s Kane Hall. Networking begins at 6:15 p.m.
Send your real estate news to Mike Benbow, Business editor, The Herald, P.O. Box 930, Everett, WA 98206, by fax at 425-339-3435 or by e-mail at economy@heraldnet.com.
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