The first rate survey of September has mortgage rates back to two year high. However, in the scheme of financial data they are only up eighteen basis points, month over month. Just this morning the Department of Labor released its report showing a rise from private employers of more than 175,000.
Additionally another key metric GDP (Gross Domestic Production) increased as well. Both are critical in analyzing the economy and have been tagged why mortgage rates increased from the previous week. While the increase was less than seven basis points, resulting in a miniscule impact to consumers, it is the trend that is being watched very closely as it provides an important barometer of the weeks and months ahead.
Just two weeks ago, the benchmark 30 Year Fixed Rate mortgage rose to 4.580%, however the next week it retreated down to 4.510%. So based on favorable economic news which keeps pouring in the slight increase was expected. The popular fifteen year mortgage also rose and is now at 3.590%.
Looking ahead and based on a traditional market it is not uncommon for rates to move as they have demonstrated during 2013. The data is presented in the form of a rate survey obtained by industry giant Freddie Mac. The data is compiled from lenders who sell mortgages to them.
Read the full report here.