Mortgage rates generally appear to be stabilizing after last week's jump above record lows, according to Freddie Mac's latest survey.
The average rate for the 30-year fixed rate mortgage came in at 4.11% during the week ending Oct. 20, just a basis point lower than the previous week. Among 15-year FRMs, the average rate was just a basis point higher at 3.38%. Both types of FRMs carried an average of 0.8 of a point.
There were slightly larger week-to-week differences in the lesser-used hybrid/adjustable-rate mortgage sector and lower average points.
The average rate for a five-year Treasury-indexed hybrid ARM came in at 3.01%, down from 3.06% the previous week; and the average one-year Treasury ARM rate during the most recent week was 2.94%, up from 2.9% the previous week. Both carried an average of 0.6 of a point.
A year ago, the average 30-year rate was 4.21%, the average 15-year rate was 3.64%, the average five-year Treasury hybrid rate was 3.45%, and the average one-year Treasury ARM rate was 3.3%.
The relative stabilization in primary market rates during the most recent week could have some bearing on refinancing levels.
U.S. mortgage securitization researchers at Barclays Capital said in a report Thursday morning that the recent, notable jump in prepayment speeds from the period when rates were lower currently looks like a one-time occurrence.
But given various government programs/proposals and other factors that also could affect the extent of refinancing, some uncertainty in the prepayment outlook remain.
