Mortgage Rates Rise

McLEAN, Va. – Home loan rates rose this week after the release of employment figures which showed better-than-expected job growth, according to Freddie Mac. The average for the benchmark 30-year, fixed-rate loan rose to 6.40%, from 6.37% last week; while the average for the 15-year, fixed-rate mortgage climbed to 6.06%, from 6.03%. ARM rates also rose, with the average for the one-year ARM moving to 5.73% this week, from 5.58%; and the average for the five-year ARM inching up to 6.12%, from 6.11%. "The economy added 110,000 new jobs last month while July and August were revised upwards by a total of 188,000 jobs, reflecting greater strength in the economy during that time than initially indicated," said Frank Nothaft, chief economist for Freddie Mac. Nothaft also said the release of the minutes from the Fed's Open Market Committee meeting on Sept. 18 reassessed the possibility of another interest rate cut. "The market currently is looking for about a 30% chance of a 25 basis point rate cut rather than the 50% chance that they had previously expected," he said.