Rates remain in holding pattern

by Ryan Smith13 Sep 2013

Mortgage rates stayed relatively steady this week after the release of a mixed jobs report, according to a survey released Thursday by Freddie Mac.

The results of Freddie’s primary mortgage market survey showed rates holding near their highs for the year. The 30-year fixed-rate mortgage had an average rate of 4.57%, unchanged from last week. Last year at this time, the average interest rate for the 30-year FRM was more than a full percentage point lower at 3.55%.

The 15-year FRM averaged 3.59%, also unchanged from last week. A year ago, the 15-year FRM averaged 2.85%, according to Freddie.

Adjustable-rate mortgages fell slightly this week. The average rate for the 5-year Treasury-indexed ARM averaged 3.22%, down from 3.28% last week, but still significantly higher than last year’s 2.72%. The 1-year Treasury-indexed ARM fell from 2.71% last week to 2.67% this week. A year ago, the 1-year ARM averaged 2.61%.

Rising interest rates have slowed originations during the last several weeks, leading big banks to announce thousands of layoffs in their mortgage units. Wells Fargo has announced 3,000 layoffs in the last two months, and JPMorgan Chase has said it will eliminate 19,000 positions – about 15,000 in its mortgage unit – over the next two years.


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