The average interest rate on a 30-year fixed-rate mortgage jumped eight basis points, while 15-year fixed-rate mortgages went up six basis points and the average rate on a 5/1 ARM rose four basis points, according to a NerdWallet survey of daily mortgage rates published by national lenders Wednesday.
The last time the 30-year fixed-rate was this high was July 11, when it matched Wednesday’s level of 4.17%. The rate is 12 basis points higher than a week ago, or about one-eighth of a percentage point. It’s half a percentage point higher than one year ago.
Bond yields and mortgage rates rose after the release of a strong report of factory orders in September. Durable goods orders for long-lasting items such as vehicles and appliances rose 2.2% in September compared with August, according to the Commerce Department. Mortgage rates often move upward on news of a vigorously growing economy.
The report on durable goods wasn’t the only robust economic news of the day. New home sales rose 18.9% in September compared with August, according to the U.S. Census Bureau. New single-family homes were sold at an annual pace of 667,000 — a 17% increase over the September 2016 sales rate.
“Every region was higher, and that’s really encouraging,” says Lee Stafford, managing director of economics and research for Ally Financial. New home sales in the South rebounded strongly compared with August, and Stafford says, “I don’t think I’m going out on a limb here when I say this is largely about recovery from hurricane disruptions.”
New homes sold in September typically had been on the market for 3.2 months. “The homes are turning very fast, which is a sign of strong demand,” Stafford says.
MORTGAGE RATES TODAY, WEDNESDAY, OCT. 25:
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.