Mortgage rates rise for second consecutive week

Mortgage rates posted their biggest week-over-week increase since July, according to Freddie Mac.

The 30-year fixed-rate mortgage averaged 3.91% for the week ending Oct. 12, up from last week when it averaged 3.85%. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.47%.

"The 30-year mortgage rate increased for a second consecutive week, jumping 6 basis points. The 10-year Treasury yield also rose, climbing 4 basis points this week," Sean Becketti, Freddie Mac's chief economist, said in a press release.

The 15-year fixed-rate mortgage averaged 3.21%, up from last week when it averaged 3.15%. A year ago at this time, the 15-year fixed-rate mortgage averaged 2.76%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.16% this week, down from last week when it averaged 3.18%. A year ago at this time, the five-year adjustable-rate mortgage averaged 2.82%.

"Mortgage rates rose last week despite a weak jobs report. Though the U.S. economy lost jobs in September — the first loss in seven years — the decline was attributed to hurricane effects in the Southeast, and other data point to a strong labor market," Aaron Terrazas, Zillow's senior economist, said when that company released its own rate tracker on Wednesday.

"Rates fell back early this week as political rhetoric lowered the odds of tax reform, at least for now. This week, markets will closely watch inflation data due Friday, as well as several speeches by FOMC voters that could provide more clarity on the likelihood of a December interest rate hike," Terrazas said.