Freddie Mac mortgage rates on the rise across the board
Both short-term and long-term mortgage rates rose for the week ending Jan. 27, according to Freddie Mac's Primary Mortgage Market Survey. The average 30-year, fixed-rate mortgage increased six basis points to 4.8%, although the rate remains lower than a year ago when it was 4.98%. Rates on 15-year FRMs rose to 4.09% from 4.05% the prior week. The average origination point for this type of loan is currently 0.8. The rate for a 15-year FRM was 4.39% one year ago. According to Freddie Mac, five-year, Treasury-indexed hybrid adjustable-rate mortgages rose slightly to 3.7% from 3.69% one week ago, while 1-year, Treasury-indexed ARMs increased one basis point to 3.26%. During the same week in 2010, the rates for these ARMs were 4.25% and 4.29%, respectively. Freddie Mac Chief Economist Frank Nothaft commented that rates followed bond yields during the week amid reports from the conference board that suggest the economy is strengthening. "The index of leading indicators rose 1% in December, nearly twice that of the market consensus forecast and represented the sixth consecutive monthly increase," Nothaft said. "They also reported a stronger gain in consumer confidence for January, rising to an eight-month high." The Bankrate survey of large thrifts showed mixed results. The rate for a 30-year FRM increased two basis points to 4.97%, the rate for a 15-year FRMs decreased slightly to 4.28% and the rate for a 5-year ARM fell to 3.84%. Write to Christine Ricciardi. Follow her on Twitter @HWnewbieCR.