Mortgage rates slightly rise
Rates rise on upward revision of last three months' employment figures; 30-year fixed hits 6.33 percent.
NEW YORK (CNNMoney.com) -- Mortgage rates rallied their upward trend on the news of large upward revisions over the past three months in employment figures, according to a survey released Thursday.
The 30-year fixed-rate mortgage (FRM) averaged 6.33 percent for the week ending Nov. 9, up from 6.31 percent, according to Freddie Mac's (Charts) Primary Mortgage Market Survey. A year ago, the 30-year FRM averaged at a higher level: 6.36 percent.
The 15-year FRM averaged 6.04 percent this week, up from 6.02 percent last week. A year ago, it averaged 5.89 percent.
Rates for five-year adjustable-rate mortgages (ARMs) came in at 6.08 percent this week, up from 6.05 percent last week. A year ago, they averaged 5.81 percent.
One-year ARMs averaged 5.55 percent, up from 5.53 percent last week. A year ago, the one-year ARM averaged 5.12 percent.
"Mortgage rates rose earlier in the week on news of large upward revisions over the past three months in employment figures, but began to drift lower as the market looked more deeply into the numbers," said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement. "For instance, in October the construction industry lost jobs, primarily due to the slowing housing market.
"That same slowing housing market shaved a little over 1 percentage point from the growth rate of Gross Domestic Product (GDP) in the third quarter. However, we expect that the GDP growth rate will increase in the final quarter of this year, although that increase is expected to come from areas other than housing."
Beware the mortgage time-bomb That ridiculously low-rate ARM may have seemed like a good idea at the time. But now, payments will be coming due in a big, big way.