Information compiled by Freddie Mac shows that mortgage rates are continuing to increase after a slight slowdown in the summer months. The 30-year FRM – Commitment rate, inched up considerably by 20 basis points to 4.83 percent from 4.63 percent in September. The October increase of the 30-year FRM – Commitment rate, is the highest level since the beginning of 2011. As a result of rising mortgage rates, affordability is at the lowest level in a decade and new home sales have been soft in recent months.
The Federal Housing Finance Agency reported that the contract rate for newly-built homes, inched up three basis points to 4.67 percent in October. Mortgage rates on purchases of newly built homes (MIRS) increased by 13 basis points over the month of October to 4.75 percent
After increasing the federal funds rate to 2 percent to 2.25 percent at the September Federal Open Market Committee meeting, the Fed remains on track to continue its gradual approach to raising interest rates with a possible rate hike in December.