Unexpectedly strong jobs growth had a negative effect on mortgage rates this week, driving rates on fixed and adjustable loans up 6 basis points, according to Freddie Mac’s Primary Mortgage Market Survey. The report raises high expectations even higher that the Federal Reserve’s Open Market Committee will take action to increase interest rates at its December meeting.
"A surprisingly strong October jobs report showed 271,000 jobs added and wage growth of 0.4 percent from last month, exceeding many experts' expectations. The positive employment reports pushed Treasury yields to about 2.3 percent as investors responded by placing a higher likelihood on a December rate hike. Mortgage rates followed with the 30-year jumping 11 basis points to 3.98 percent, the highest since July. There is only one more employment report before the December FOMC meeting, which will have major implications on whether we see a rate hike in 2015,” said Sean Becketti, Freddie Mac chief economist.
- 30-year fixed-rate mortgage (FRM) averaged 3.98 percent with an average 0.6 point for the week ending Nov. 12, 2015, up from last week when it averaged 3.87 percent. A year ago at this time, the 30-year FRM averaged 4.01 percent.
- 15-year FRM this week averaged 3.20 percent with an average 0.6 point, up from last week when it averaged 3.09 percent. A year ago at this time, the 15-year FRM averaged 3.20 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.03 percent this week with an average 0.4 point, up from last week when it averaged 2.96 percent. A year ago, the 5-year ARM averaged 3.02 percent.
- 1-year Treasury-indexed ARM averaged 2.65 percent this week with an average 0.2 point, up from 2.62 percent last week. At this time last year, the 1-year ARM averaged 2.43 percent.