And So it Begins: Weekly Mortgage Rates Jump
One day after the Federal Reserve’s $1.25trn mortgage-backed securities (MBS) purchase program came to a close, mortgage rates were up in two weekly surveys. Freddie Mac’s (FRE) weekly survey put the average rate for a 30-year fixed-rate mortgage (FRM) at 5.08% with an average 0.7 origination point for the week ending April 1, up from last week’s average of 4.99%. At this time last year, the average rate was 4.78%. Bankrate.com’s survey of large banks and thrifts put the 30-year FRM at 5.23% with an average 0.4 origination point, up from last week’s average of 5.11%. “Interest rates for fixed mortgages rose this week following a run up in long-term bond yields, while ARM rates eased slightly,” said Freddie Mac vice president and chief economist Frank Nothaft. “Rates on 30-year fixed loans were the highest since the starting week of this year. The 15-year FRM averaged 4.39% with an average 0.6 point, up from last week’s average of 4.34%. Last year, the average rate for a 15-year FRM was 4.52%. Bankrate.com put the 15-year FRM at 4.53% with an average 0.4 origination point, up from 4.47%. Freddie put the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.1% with an average 0.6 origination point, down from last week when it averaged 4.14%. Last year, the five-year ARM averaged 4.92%. Bankrate.com said the five-year ARM averaged 4.51% with an average 0.4 origination point. Freddie said the one-year Treasury-indexed ARM averaged 4.05% with an average 0.6 point, down from last week when it averaged 4.2% and last year when it averaged 4.75%. Write to Austin Kilgore. The author held no relevant investments.