Mort­gage rates up again for Oc­to­ber

Honolulu Star-Advertiser - - BUSINESS -

WASH­ING­TON >> Long-term mort­gage rates rose for a sec­ond straight week as the av­er­age 30-year fixed mort­gage rate in­creased to 3.91 per­cent, from 3.85 per­cent a week ago. Mort­gage buyer Fred­die Mac says the 15-year home loan, fre­quently used by home­own­ers who re­fi­nanced their mort­gages, also jumped, ris­ing to 3.21 per­cent, from 3.15 per­cent. Mort­gage rates have picked up a bit in the past month. The av­er­age 30-year rate fell to 3.78 per­cent in early Septem­ber, its low­est level this year.

Rates on home loans typ­i­cally track the yield on 10-year Trea­sury notes, which have in­creased in re­cent weeks. Fed­eral Re­serve pol­i­cy­mak­ers in­di­cated in a meet­ing last month that they are likely to raise short-term rates for the third time this year in De­cem­ber, a move that can also lift longer-term rates. To cal­cu­late av­er­age mort­gage rates, Fred­die Mac sur­veys lenders across the coun­try between Mon­day and Wed­nes­day each week. The av­er­age doesn’t in­clude ex­tra fees, known as points, which most bor­row­ers must pay to get the low­est rates. One point equals 1 per­cent of the loan amount.

The av­er­age fee for a 30-year mort­gage was un­changed from last week at 0.5 point. The fee on 15-year loans also re­mained at 0.5 point. Rates on ad­justable five-year loans slipped to 3.16 per­cent from 3.18 per­cent last week. The fee was un­changed at 0.4 point.

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