After the slightest of reprieves last week, rates continued their quarter point jumps for the week ending October 13th, according to the Freddie Mac weekly survey.
- The 30-year fixed jumped 26 basis points to 6.92%, this was the 3rd quarter point jump in the last four weeks which is now 387 basis points higher than one year ago.
- The 15-year jumped 15 bips to 6.09% and the 5/1 ARM saw a massive 45 basis point jump to 5.81%.
20-Year High. Sam Khater, Freddie Mac’s Chief Economist. said its a tale of two economies. “Rates resumed their record-setting climb this week, with the 30-year fixed-rate mortgage reaching its highest level since April of 2002…We continue to see a tale of two economies in the data: strong job and wage growth are keeping consumers’ balance sheets positive, while lingering inflation, recession fears and housing affordability are driving housing demand down precipitously.”
Bottom Line: September’s hotter than expected CPI report and stronger than expected jobs report means rates aren’t dropping anytime soon regardless of the impact it has on housing.