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Freddie Mac: Mortgage Rates Rise from Recent Lows - Freddie Mac's Primary Mortgage Market Survey for the week ended October 15 was released on Thursday. The report showed all four mortgages tracked by the survey had risen during the week.

The 30-year fixed-rate mortgage averaged 4.92 percent with 0.7 point for the week ended October 15. A week earlier the average was 4.87 percent also with 0.7 point.

The 15-year FRM had an average contract interest rate of 4.37 percent compared with the all-time record low of 4.33 percent reached the previous week. Fees and points were unchanged at 0.7 point.

The five-year Treasury-indexed hybrid adjustable rate mortgage (ARM) increased from 4.35 percent to 4.38 percent. Fees and points also rose from 0.5 point to 0.6 point.
The one-year ARM increased 7 basis points to 4.60 percent. Fees and points remained stable at 0.5 point.

According to Frank Nothaft, Freddie Mac vice president and chief economist, "Mortgage rates rose slightly over the week, but rates on 30-year fixed mortgages remained below 5 percent for the third consecutive week. Homeowners are taking advantage of these low rates to refinance their current balances. Over the past five weeks ending October 9, more than 3 out of 5 mortgage applications were for refinancing, according to the Mortgage Bankers Association.

Fed Continues to Slow MBS Purchases - The Federal Reserve today reported on their weekly purchases of agency mortgage-backed securities (MBS). In the four trading days between October 8 and October 14, the Federal Reserve purchased a total of $21.42 billion agency MBS. In those four days the Federal Reserve sold a total of $5.32 billion agency MBS with almost all sales being Fannie Mae 5.5 MBS coupons. After sales, the Fed's weekly net purchases were $16.1 billion.

The goal of the Federal Reserve's agency MBS program is to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally. Only fixed-rate agency MBS securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae are eligible assets for the program. The program includes, but is not limited to, 30-year, 20-year and 15-year securities of these issuers.