Mortgage rates were mostly higher for the week ending October 22, according to Freddie Mac's weekly survey.
The 30-year fixed rate mortgage averaged 5.00% with an average 0.7 point, up from 4.92% last week. This is the third straight week that mortgage rates have increased after coming to within nine basis points of last spring"s record low of 4.78%.
As mortgage rates have backed off, refinancing activity has slipped as well, and is likely to have slowed this week too given the higher mortgage rates. For the week ending October 16, the Mortgage Bankers Association (MBA) reported a 17% drop in the Refi Index to about 2807.
Freddie Mac also reported a six basis points increase in 15-year fixed mortgage rates to 4.43% and a two basis points gain in 5/1 hybrid ARMs to 4.40%. The one-year rate was an exception, declining six basis points to 4.54%.
If rates continue to rise and refinancing activity to slow, slight downward revisions are likely on November and December prepayment outlooks. Currently, speeds are projected to increase about 3-5% overall for both Fannie and Ginnies. October is projected to show increases of over 10% for Fannies and less than 5% for Ginnies.
