Freddie Mac's Primary Mortgage Market Survey® (PMMS®) showed that the the 30-year fixed-rate mortgage (FRM) averaged 6.40 percent for the week ending October 11, 2007, up from last week when it averaged 6.37 percent. Same period last year, the 30-year FRM averaged 6.37 percent.

The 15-year FRM this week averaged 6.06 percent, up from last week when it averaged 6.03 percent. A year ago, the 15-year FRM averaged 6.06 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.12 percent this week, up slightly from last week when it averaged 6.11 percent. A year ago, the 5-year ARM averaged 6.10 percent.

One-year Treasury-indexed ARMs averaged 5.73 percent, up from last week when it averaged 5.58 percent. At this time last year, the 1-year ARM averaged 5.56 percent.

"Mortgage rates edged up this week following the release of the September employment figures," said Frank Nothaft, Freddie Mac vice president and chief economist. "The economy added 110,000 new jobs last month while July and August were revised upwards by a total of 188,000 jobs, reflecting greater strength in the economy during that time than initially indicated.

"Meanwhile, following the release of the September 18th minutes of the Fed's Open Market Committee (FOMC) meeting, financial markets reassessed the likelihood of another rate cut at the upcoming October 31st meeting. The market currently is looking for about a 30 percent chance of a 25 basis point rate cut rather than the 50 percent chance that they had previously expected." 
 

Reference: FreddieMac Primary Mortgage Market Survey® (PMMS®), www.freddiemac.com