30-Year Rate Passes 6%

The average 30-year fixed mortgage rate rose from 5.98% to 6.03% over the seven-day period ended Oct. 13, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate increased from 5.54% to 5.62%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages rose from 5.48% to 5.57%, and the average rate for one-year Treasury-indexed ARMs climbed from 4.77% to 4.85%. Fees and points averaged 0.6 of a point for fixed-rate mortgages and one-year ARMs and 0.7 of a point for hybrid ARMs. "In spite of the job losses caused by hurricanes Katrina and Rita, the employment report was better than has been expected," said Frank Nothaft, Freddie Mac's chief economist. "This indicates that economic growth is likely to accelerate in 2006. That acceleration of growth, coupled with the specter of higher energy costs, will translate into higher long-term mortgage rates in the coming months." A year ago, the average 30-year and 15-year fixed rates were 5.74% and 5.14%, respectively, and the average one-year ARM rate was 4.01%, Freddie Mac said.