Mortgage rates spiked this week after stronger-than-expected job growth and new home sales, according to data released Thursday by Freddie Mac.
“Private companies added 215,000 new jobs in November according to the ADP employment report, well above the consensus,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “In addition, revisions added 54,000 jobs in the prior month. Lastly, new home sales rose 25 percent in the month of October to a seasonally adjusted 444,000 annual pace, though this followed a weaker-than-expected September report and downward revisions over the summer months.”
The higher numbers produced a sharp spike in average rates for fixed-rate mortgages. The 30-year FRM jumped to 4.46% this week, up from last week’s average of 4.29%. Last year at this time, the average rate for the 30-year FRM was 3.34%.
The 15-year FRM also saw a steep increase, up to 3.47% this week from last week’s 3.30%. Last year, the 15-year FRM averaged 2.67%.
Adjustable-rate mortgages were more stable. The 5-year Treasury-indexed hybrid ARM averaged 2.99% this week, up from last week’s 2.94%. The 1-year ARM, meanwhile, crept downward to 2.59% from last week’s 2.60%.