Mortgage rate ticked slightly higher after a strong jobs report, adjusting rates back to the level seen around the start of 2015, the latest Freddie Mac Primary Mortgage Market Survey found.
The 30-year, fixed-rate mortgage averaged 3.86% for the week ended March 12, up from last week’s 3.75%. A year ago, the 30-year averaged 4.37%.
Also increasing, the 15-year-year, FRM jumped to 3.10%, up from 3.03% a week ago. In 2014, it came in at 3.38%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage moved up from 2.96% last week to 3.01%. A year ago, the 5-year ARM averaged 3.09%.
The 1-year Treasury-indexed ARM came in at 2.46%, increasing from 2.44% last week, but slightly down from 2.48% a year ago.
“The average 30-year fixed-rate mortgage rose to 3.86 percent for this week following a strong labor market report, essentially bring rates back to where they were at the start of the year. The U.S. economy created 295,000 jobs in February while the unemployment rate dipped to 5.5% from 5.7% in January, both outperforming market expectations,” said Len Kiefer, deputy chief economist, Freddie Mac.
Similarly, Bankrate posted the 30-year, fixed hitting 3.97%, increasing from 3.93% a week prior.
The 15-year, fixed moved to 3.18%, up from 3.16% last week, while the 5/1 ARM dipped to 3.23%, down from 3.28% a week ago.
“A strong jobs report that initially pushed mortgage rates higher was offset somewhat, though not entirely, by investor nervousness about the falling euro. Even though the U.S. economy is improving and an eventual Fed interest rate hike is coming, the strengthening U.S. dollar has fueled demand for dollar denominated assets such as government and mortgage-backed bonds,” analysts with Bankrate said.