This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Mortgage Rates Surge

Mortgage rates have surged over the past week, making the purchase of a new home even less attractive in the already weak housing market.

Government-backed mortgage giant Freddie Mac (FRE) reported Thursday that fixed-rate mortgages have reached their highest level in nearly a year.

The rise in mortgage rates comes as banks continued to fear that the cash-strapped lender and its counterpart, Fannie Mae (FNM), will slow their purchase of loans. Freddie said in an SEC filing last week that it may even sell some mortgage securities to shore up capital levels.

Weaker demand leads to higher interest rates, and all types of mortgages have been driven upward over the past week. Certain rates move in tandem with Treasury notes, which have also been pushed higher over the past week. The yield on the 10-year Treasury bond was at 4.148% by noon on Thursday, up from 4.038% a week earlier.

Freddie's chief economist Frank Nothaft also noted that large jumps in consumer prices, a 4.8% drop in housing prices, and a decline in new-home construction also contributed to the higher rates.

The average rate for a 30-year fixed mortgage climbed to 6.63% from 6.26% just a week earlier, according to Freddie. The average upfront payment was six-tenths of a percent. The 15-year fixed rate rose to 6.18% from 5.78% with the same upfront payment.

Five-year adjustable-rate mortgages that are hybrids indexed to Treasurys averaged 6.16% from 5.8% a week ago. The average upfront payment was seven-tenths of a point. Shorter term one-year ARMs averaged 5.49% with an average payment of half a point, up from 5.1%.

Consumers can check the most competitive rates available locally by entering their ZIP codes at

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs