Mortgage Rates Friday: Up Following Budget News

Mortgage Rates, Mortgages
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The average rate for 30-year fixed-rate mortgages went up four basis points, while the 15-year fixed and 5/1 ARM each rose two basis points, according to a NerdWallet survey of daily mortgage rates published by national lenders Friday.

The 30-year fixed is at its highest level since July 26, when it averaged 4.11%. It is eight basis points higher than one week ago, and 39 basis points higher than a year ago.

The rise can be attributed to news coming out of the Senate, which adopted a budget resolution Thursday. Through parliamentary intricacies, adoption of the resolution will make it easier for Republicans to change the tax code without any Democratic votes in the Senate.

If Congress succeeds in cutting taxes without corresponding decreases in spending, the federal government will have to issue more bonds to pay for budget deficits. The prospect of this future development drove Treasury bond yields higher Friday, and since mortgage rates tend to move in concert with bond yields, mortgage rates moved upward as well.

MORTGAGE RATES TODAY, FRIDAY, OCT. 20:

(Change from 10/19)
30-year fixed: 4.09% APR (+0.04)
15-year fixed: 3.52% APR (+0.02)
5/1 ARM: 4.02% APR (+0.02)


NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

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