Mortgage Rates Moved Slightly During Past Week

After surging during the week ended September 25, mortgage rates were largely unchanged during the week ended October 2 according to results released on Thursday by Freddie Mac.

The Primary Mortgage Market Survey indicated that the 30 year fixed-rate mortgage (FRM) averaged 6.10 percent with 0.6 point compared to the previous week when it came in at an average of 6.09 percent with 0.7 point.

The 15-year FRM also edged up a single basis point from 5.77 percent to 5.78 percent.   Fees and points were unchanged at 0.6.

The rates on Treasury-indexed adjustable rate mortgages (ARMs) fell during the week, but again only slightly.  The five-year hybrid ARM averaged 6.0 percent with 0.6 point compared to the week ended September 25 when it averaged 6.02 percent also with 0.6 point.

The one-year ARM lost four basis points, averaging 5.12 percent for the week.  Fees and points remained at 0.5.

"Average mortgage rates were nearly unchanged during the past week, leaving rates above the levels of two weeks ago," according to Frank Nothaft, Freddie Mac vice president and chief economist.  "Reflecting the rate uptick from two weeks ago, the Mortgage Bankers Association reported that loan applications were down 23 percent last week."

"The Institute for Supply Management's manufacturing index dropped from Augusts' 49.9 to 43.5 in September, indicating further erosion in new orders, a decline in order backlog, and lessened production, suggesting further cutbacks in manufacturing activity in coming weeks.  Consumers are feeling the effects of the slowing economy as well.  For example, consumer spending was unchanged in August and revised downward for the month of July."