WASHINGTON (11/12/13)--Freddie Mac reported Thursday that the average rate on 30-year fixed-rate mortgages rose to 4.16% for the week ended Nov. 1.
The increase was from the previous week rate of 4.10%, the lowest in four months. For 15-year, fixed-rate mortgages, the average rate rose to 3.27% from 3.20%. The average doesn't include extra fees, or points, that borrowers pay to get the lowest rates. One point equals 1% of the loan.
The average fee for a 30-year, fixed mortgage increased to 0.8 point from 0.7 point, while the fee for a 15-year mortgage stayed steady at 0.7 point.
Associated Press reported that rates have fallen since September, when the Federal Open Market Committee, the Federal Reserve's monetary policymaking group, went against expectations and decided not to taper off its quantitative easing policy of buying $85 billion each month in bonds (USA TODAY Nov. 7). The QE3 policy is intended to keep the long-term rates lower.
NEW YORK (11/12/13)--A key predictor of future inflation reached a new low this year in October.
The New York-based Economic Cycle Research Institute released data on Friday showing that its U.S. future inflation index fell to 99.5 last month, down from 100 in September. It's the first time in 2013 that the measure has dipped below 100 (Economy.com Nov. 8).
The ECRI's Weekly Leading Index, a gauge of future economic growth, fell in the week ending Nov. 1 to a three-week low of 131--down from 131.4 the prior week.
The independent research firm's annualized growth rate for the week ending Nov. 1 was 1.8%--up from 1.7% last week when the measure hit a 14-month low.