Rates Jumped Sharply in the Past Week

October 16, 2018
rates
Rates jumped sharply in the past week, reaching levels not seen for over seven years.

 

For the week ending October 11, Freddie Mac announced that 30-year fixed rates increased to 4.90% from 4.71% the week before. The average for 15-year loans rose to 4.29% and the average for five-year adjustables increased to 4.07%. A year ago, 30-year fixed rates averaged 3.91%, just about one percent lower than today. Attributed to Sam Khater, Chief Economist, Freddie Mac -- "Rising rates paired with high and escalating home prices is putting downward pressure on purchase demand. While the monthly payment remains affordable due to the still low rate environment, the primary hurdle for many borrowers today is the down payment and that is the reason home sales have decreased in many high-priced markets."Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

 Current Indices for Adjustable Rate Mortgages 
Updated October 12, 2018 

 

Daily Value

Monthly Value

 

Oct 11

September

6-month Treasury Security

2.44%

2.34%

1-year Treasury Security

2.66%

2.56%

3-year Treasury Security

2.94%

2.84%

5-year Treasury Security

3.00%

2.89%

10-year Treasury Security

3.14%

3.00%

12-month LIBOR

 

2.919% (Sept)

12-month MTA

 

2.053% (Sept)

11th District Cost of Funds

 

1.015% (Aug)

Prime Rate

 

5.25% (Sept)