Freddie Mac reported average fixed mortgage rates increased sharply from the previous week’s record-setting lows following a better-than-expected unemployment report last Friday.
Despite the sharp increase, mortgage rates are still near their 60-year lows.
The government-sponsored mortgage corporation said on Thursday the 30-year fixed-rate mortgage average was 4.12 percent for the week ending Oct. 13, up from the previous week’s lowest recorded 30-year fixed-rate of 3.94 percent. On Oct. 6, the conventional 30-year fixed-rate mortgage fell below 4 percent for the first time in history.
Last year at this time, the 30-year fixed rate average was 4.19 percent.
The 15-year fixed-rate mortgage this week averaged 3.37 percent with an average 0.8 point, up from last week when it averaged 3.26 percent. A year ago at this time, the 15-year fixed-rate mortgage average was 3.62 percent.
The previous lows took place when long-term, fixed-rate mortgages backed by the Federal Housing Administration averaged 4.08 percent for several months from 1950 to 1951.
According to Freddie Mac’s surveys last quarter, more than 95 percent of people who refinanced chose a fixed-rate product and 77 percent either maintained or reduced their loan amount.
“The 15-year fixed rate mortgage is a popular refinancing product, especially for baby boomers thinking about retiring in that 15- to 20-year time frame who want to have the peace of mind knowing they’ll have their mortgage paid off,” he said.