Mortgage Rates Rise by Just 2 Basis Points, But Troubles Remain for Housing Market

Source: National Mortgage News

Mortgage rates rose by just two basis points this week, even as the 10-year Treasury yield finally broke through the 4% mark on a sustained basis last Friday due to continued uncertainty.

The 10-year yield, the benchmark for 30-year fixed-rate mortgages, had been flirting around or just below the 4% level for several weeks. Between Oct. 13 and Oct. 19, the yield 18 bps to 4.13%.

But the 30-year FRM rose to an average 6.94% for the week of Oct. 20, up from 6.92% for the week ended Oct. 13, according to the Freddie Mac Primary Mortgage Market Survey. The pace of increases has slowed, especially compared with last week's 26 bps, but troubles remain for the housing market, the GSE said.