30-Year Rate Hits 15-Month High

The average 30-year fixed mortgage rate rose from 6.03% to 6.10% over the seven-day period ended Oct. 20, its highest level since July 2004, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate increased from 5.62% to 5.65%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages rose from 5.57% to 5.59%, and the average rate for one-year Treasury-indexed ARMs climbed from 4.85% to 4.89% (its highest level since April 2002). Fees and points averaged 0.5 of a point for 30-year fixed-rate mortgages, 0.6 of a point for 15-year FRMs, and 0.7 of a point for ARMs. "Despite the gradual rise in mortgage rates over the last two months, housing starts were actually up in September, highlighting the resiliency of the housing market," said Frank Nothaft, Freddie Mac's chief economist. "As a matter of fact, housing directly contributed to real [gross domestic product] growth of 19% in the first quarter of the year and 23% in the second quarter." A year ago, the average 30-year and 15-year fixed rates were 5.69% and 5.07%, respectively, and the average one-year ARM rate was 4.02%, Freddie Mac said.