On Thursday, Freddie Mac, reported that on average for this week, 30 year fixed-rate mortgages were at 6.46%, which is up 6.04% from the previous week, making rates the highest they have been since Oct. 16th. In late July they were also high, spiking at 6.63%, before dropping to the lowest figure in 7 months, of 5.78% during the week of Sept. 18th.

This is most likely a result of the effects the financial crisis in regards to the bond markets. As Wall Street was unstable, investors heavily invested in Treasury securities, but now that things are a bit more stable, they are looking at different investments. Less demand for Treasury securities, makes yields higher, which makes mortgage rates increase. Frank Nothaft, the chief economist for Freddie Mac, said that “Long-term mortgage rates followed long-term Treasury bond yields higher this week, pushing fixed-rate mortgages up,”. Nothaft did feel that the Federal Reserve cutting the interest rate by .5 points on Wednesday, would help to keep interest rates in tune to the Fed´s short-term rates, such as with one year mortgages.

Rates on all types of mortgages increased this week. 15-year fixed mortgages, usually seen with those refinancing, went from 5.72% to 6.19%. Five year adjustable loans went from 6.06% to 6.36%, while those for one year went from 5.23% to 5.38%. Furthermore, points or add-on fees for the loans also rose. The fee for 5,15, and 30 year mortgages hit 0.7% and those at one year at 0.6.