Fixed mortgage rates rose this week for the second week in a row on stronger jobs data than was expected, according to a study released Thursday.
The average rate for a 30-year fixed-rate mortgage climbed to 4.35% this week, up from last week’s 4.16%. Last year at this time, the average rate for a 30-year FRM was 3.34%. The average rate for a 15-year FRM was also up this week, rising to 3.35% from last week’s 3.27%. A year ago, the average rate for a 15-year FRM was 2.65%.
“Fixed mortgage rates increased this week following stronger-than-expected economic data releases,” said Freddie Mac vice president and chief economist Frank Nothaft. “Nonfarm payrolls increased by 204,000 in October, above the consensus forecast. In addition, revisions added 60,000 additional jobs to the prior two month releases. Preliminary estimates indicate Real GDP growth in the third quarter was 2.8 percent, also above consensus.”
The 5-year Treasury-indexed hybrid adjustable-rate mortgage also rose, climbing from last week’s average of 2.96% to 3.01% this week. A year ago, the 5-year ARM averaged 2.74%. The 1-year ARM remained unchanged this week at 2.61%.