Joe Wilson's Silicon Valley Real Estate Blog

Mortgage News Daily, October 23, 2008

Mortgage interest rates reversed the stunning increases seen the previous week, erasing almost all of the gains seen in fixed rate products according to Freddie Mac's weekly Primary Mortgage Market Survey for the week ended October 23.  

"Long-term mortgage rates fell this week amid news of tame inflation and a weaker housing market," said Frank Nothaft, Freddie Mac vice president and chief economist. "Consumer prices were unchanged in September and core prices, which exclude food and energy products, rose by only 0.1 percentage point, all below the market consensus. On a year-over-year basis growth in core consumer prices remained at a 2.5 percent clip."

During the week ended October 16 the interest rate on 30-year fixed rate mortgages (FRMs) jumped 52 basis points, a one-week change last seen in 1987. The 15-year FRM was up 51 basis points.

During the most recent week the 30-year dropped from 6.46 percent to 6.04 percent with fees and points unchanged at 0.6.

The 15-year FRM this week averaged 5.72 percent with an average 0.6 point, down from last week when it averaged 6.14 percent.