Average fixed mortgage rates were up a bit from last week, applying additional pressure for those local markets that are already feeling an affordability pinch, according to Freddie Mac. This follows last week’s slight downtick.
“Mortgage rates rose following the uptick on the 10-year Treasury note after comments by the Federal Reserve Board Chair Janet Yellen indicated a possible increase in interest rates as soon as early 2015,” said Freddie Mac chief economist Frank Nothaft. “Also, the S&P/Case-Shiller 20-city composite house price index rose 13.2% over the 12-months ending in January 2014.”
Freddie Mac’s new blog noted this week: “One thing seems certain: we aren't likely to see average 30-year fixed mortgage rates return to the historic lows experienced in 2012. The all-time record low – since Freddie Mac began tracking mortgage rates in 1971 – was 3.31% in November 2012. Conversely, the all-time record high occurred in October of 1981, hitting 18.63%. That's more than four times higher than today's average 30-year fixed rate of 4.32% as of March 20.”
The 30-year fixed rate mortgage averaged 4.4% with an average 0.6 point for the week ending March 27, 2014, up from last week when it averaged 4.32%. A year ago at this time, the 30-year FRM averaged 3.57%.
The 15-year FRM averaged 3.42% with an average 0.6 point, up from last week when it averaged 3.32%. A year ago at this time, the 15-year FRM averaged 2.76%.
The 5-year adjustable rate mortgage rate averaged 3.10% this week with an average 0.5 point, up from last week when it averaged 3.02%.
The 1-year ARM was at 2.44% this week with an average 0.4 point, down from last week when it averaged 2.49%. At this time last year, the 1-year ARM averaged 2.62%.