An expected surge in mortgage rates came to fruition this week. The latest forecast has fixed rates tumbling in next week’s report. A new index for adjustable-rate mortgages moved lower.

A stunning 19-basis-point surge from the preceding week left average 30-year fixed rates at 4.90 percent in Freddie Mac’s Primary Mortgage Market Survey for the seven-day period that concluded on Oct. 11.

Historical data from the secondary mortgage lender indicate that long-term fixed rates have not been that high since the week ended April 14, 2011, when the average was also 4.91 percent.

Source: Mortgage Daily