McLEAN, Va. – Mortgage rates surged this week amidst the new market turmoil, after falling significantly in each of the last two weeks, according to Freddie Mac.
The average for the benchmark 30-year, fixed-rate loan rose to 6.09% this week, from 5.78% last week, after falling almost 75 basis points the past two weeks.
The average for the 15-year, fixed-rate mortgage climbed to 5.77% this week, from 5.35% last week.
ARM rates also moved higher, with the average for the five-year ARM rising to 6.02%, from 5.67%; and the average for the one-year ARM increasing to 5.16%, from 5.03%.
"Mortgage rates followed Treasury bond yields higher this week amid market uncertainty over the current state of the economy," said Frank Nothaft, chief economist for Freddie Mac.
The most recent housing information shows some softness in prices and sales, according to Nothaft.
"House prices fell 5.3% over the 12 months ending in July -- weaker than the market consensus -- according to the Federal Housing Finance Agency's purchase-only house price index."
"The median sales price of existing single-family homes fell 9.7% in August over August 2007, the largest 12-month drop since records began in 1968, according the National Association of Realtors. Overall resales dipped by 2.2% between July and August, on a seasonally-adjusted basis."
