“The National Association of Realtors reported that their pending sales metric dipped for the fifth consecutive month and was slightly below year-ago levels, presaging a softening in sales near year-end. Nonetheless, house prices rose as homes-for-sale inventory remained tight in many markets,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The S&P/Case-Shiller House Price index released yesterday showed prices in the 20 largest cities increased 13.3 percent annually in September, the highest year-over-year increase since February 2006, and a bit stronger than the Federal Housing Finance Agency's U.S.-wide Purchase-Only index, which appreciated 8.5 percent over the same period.”
Average rates for 30-year fixed-rate mortgages were 4.29% last week, up from 4.22% the previous week. A year ago, the 30-year FRM averaged 3.32%. The 15-year FRM rose to 3.30% last week from the previous week’s 3.27%.
Meanwhile, adjustable-rate mortgages were down slightly. The average rate for the 5-year Treasury-indexed hybrid ARM was 2.94% last week, edging down from the prior week’s 2.95%, while the 1-year Treasury-indexed ARM went from 2.61% to 2.60% last week.
Fixed mortgage rates were up slightly heading into the holiday after the release of mixed housing data last week, according to a report released Wednesday by Freddie Mac.