In Freddie Mac's results of its Primary Mortgage Market Survey (PMMS) the 30-year fixed-rate mortgage (FRM) averaged 6.46 percent with an average 0.7 point for the week ending October 30, 2008, up from the previous week when it averaged 6.04 percent. Last year at this time, the 30-year FRM averaged 6.26 percent.

The 15-year FRM this week averaged 6.19 percent with an average 0.7 point, up from the previous week when it averaged 5.72 percent. A year ago at this time, the 15-year FRM averaged 5.91 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.36 percent this week, with an average 0.7 point, up from the previous week when it averaged 6.06 percent. A year ago, the 5-year ARM averaged 5.98 percent.

One-year Treasury-indexed ARMs averaged 5.38 percent this week with an average 0.6 point, up from the previous week when it averaged 5.23 percent. At this time last year, the 1-year ARM averaged 5.57 percent.

"Long-term mortgage rates followed long-term Treasury bond yields higher this week, pushing fixed-rate mortgages up to levels of two weeks ago," said Frank Nothaft, Freddie Mac vice president and chief economist. "The Federal Reserve’s 0.50 percentage point cut in the discount rate and federal funds target rate on Wednesday was widely anticipated in the financial markets and is likely to keep short-term interest rates low; consequently, initial interest rates on ARMs, which tend to be set relative to other short-term rates, may remain near current levels.

"In other news, house-price declines in many markets have improved housing affordability and stimulated home sales. In September, sales of existing homes rose 5.5 percent while sales of new homes were up 2.7 percent, at a seasonally-adjusted annual rate."

Reverse Mortgages Get Boost from Uncle Sam

Starting on Nov. 1, the limit on FHA-backed reverse mortgages, dubbed Home Equity Conversion Mortgages (HECMs), will rise to $417,000 nationwide.

The new rules also will institute a 2-percent cap on origination fees for the first $200,000 of the loan amount or a 1-percent ceiling for higher amounts, with a $6,000 inflation-adjustable limit.

Additionally, seniors will be allowed to use such loans to purchase a new property and extract equity from co-operative properties, and lenders will no longer be allowed to sell annuities and other financial products along with the mortgage.

Presently, 99 percent of new reverse mortgages are HECMs.

Gen Y Wants High Tech, Green Homes

Gen Y, which will be 30 percent of homeowners by 2015, are forcing home builders to look differently at what they design, build, and sell.

The genreation born between 1976 and 1982 wants high-tech convenience and communication, walkability, green building standards, and diversity. They'll sacrifice space, and some will even pay more, to incorporate those qualities into their lives, real estate experts told an audience at a recent forum on developing real estate for Gen Y, sponsored by the Urban Land Institute.

"In-town areas and inner suburbs will really remain on an upward trajectory" when the housing market turns around, said Sarah Kirsch, senior principal at research firm Robert Charles Lesser, who conducted a study on Gen Y attitudes about real estate.

Gen Y's favorite neighborhood amenity is a library, followed by a restaurant or cafe, a main street village, a recycling center, and a fitness center.

Does Your Home have a Fiery Appeal?

Outdoor living is becoming more popular as indoor living space is shrinking and becoming an extremely high-cost premium. But what gives your home a fiery spark to send buyers rushing to write an offer? Perhaps, bringing the comforts of indoor living outside may help.

Outdoor fireplaces create a visual focal point and are often a quality of the home that attracts buyers. "This is a great way for people to warm up and gather around. They're very well engineered," says Peter Ross, CEO of Home & Hearth, Inc.

Here are a few quick tips if you're planning to purchase an outdoor fireplace.