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The 30-year fixed-rate average increased to 4.94 percent. (J. Lawler Duggan for The Washington Post)
Kathy Orton
Reporter and editor covering the Washington metropolitan area housing market
Strong employment numbers caused the highest rates of retirement in the world.
According to the latest data released on Thursday by Freddie Mac, the 30-year fixed-rate average jumped to 4.94 percent with an average 0.5 point. (Points are paid to a lender equal to 1 percent of the loan amount.) It was 4.83 percent a week ago and 3.90 percent a year ago. The 30-year fixed was last this high in February 2011.
The 15-year average rate climbed to 4.33 percent with an average 0.5 point. It was 4.23 percent a week ago and 3.24 percent a year ago. The five-year adjusted average rate rose to 4.14 percent with an average 0.3 point. It was 4.04 percent last week and 3.22 percent a year ago.
"The all-important read on the American labor market showed stronger-than-expected employment and wage growth, which gives the US Federal Reserve a further view of the US economy can withstand higher interest rates," said Aaron Terrazas, senior economist at Zillow. "The upward momentum for rates is likely to continue in the near term."
[Mortgage rates are on the rise. Here are some tips for getting the lowest rate.]
The Federal Reserve concludes its meeting later today and is not expected to raise its benchmark rate. However, indications are that the Fed will fall this year when it meets next month. The central bank does not set mortgage rates, but its decisions influence them.
Bankrate.com, which puts out a weekly rate of interest. Half said they will continue in the coming week. The other half expect them to remain relatively stable.
Greg McBride, Chief Financial Analyst at Bankrate.com, predicts that rates will rise.
"No Fed rate is higher," McBride said.
Michael Becker, branch manager at Sierra Pacific Mortgage, says rates will hold steady.
"With a lack of economic news or reports to move markets," Becker said, "I expect bond yields and mortgage rates to remain flat in the coming weeks.
With rates rising, mortgage applications continued to decrease, according to the latest data from the Mortgage Bankers Association. The market composite index – a measure of total loan volume – declined 4 percent from a week earlier. The refinance index fell 3 percent from the previous week, while the purchase index dropped 1 percent.
The refinance share of mortgage income accounted for 39.1 percent of all applications.
"The steady rise in mortgage rates continues to weigh on mortgage applications," said Bob Broeksmit, MBA president and chief executive. "Although purchase applications declined for the second straight week, mortgage lenders throughout the country say homebuyer demand is still strong. With rising prices, increasing inventory and rising incomes, the foundation is there for you to pick up the end of the year. "
The MBA also released its mortgage credit availability index (MCAI) this week showed up credit availability in October. The MCAI rose 2.5 percent to 186.7 last month. An increase indicates that lending standards are loosening, while a decrease signals they are tightening.
"Joel Kan, an MBA economist, said in a statement. "Reversing a trend of the last month, the future of the future. This increase in supply is likely to grow in the market. … Jumbo credit availability expanded last month, with the jumbo index increasing again to its highest level since the survey began. "
more Real Estate:
Mortgage rates are on the rise. Here are some tips for getting the lowest rate.
FHA is making more mortgages
A credit score of 704 adds up to good news for home buyers
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