Mortgage rates follow Treasury yields higher
Fixed-rate mortgages rose alongside reports of higher Treasury yields this past week, Freddie Mac said in its latest Primary Mortgage Market Survey. The 30-year, fixed-rate mortgage edged closer to the 5% mark, rising from 4.51% last week to 4.6%. The same rate averaged 4.57% this time last year. Meanwhile, the 15-year, FRM hit 3.75%, up from 3.69% a week earlier and down from 4.07% last year. The 5-year, Treasury-indexed hybrid adjustable-rate mortgage averaged 3.3%, up from 3.22% a week earlier and down from 3.75% last year. In addition, the 1-year Treasury-indexed ARM hit 3.01%, up from 2.9% last week. “Mortgage rates followed Treasury yields higher over the holiday week but remain quite affordable by historical standards," said Frank Nothaft, vice president and chief economist for Freddie Mac. "For instance, interest rates on all mortgages outstanding in the first quarter of this year averaged just under 6%. With today’s rates, these homeowners who have the ability to refinance could shave $169 per month in interest payments on a $200,000, 30-year, fixed mortgage.” Bankrate Inc. reported a similar trend, with mortgage rates reaching a two-month high. According to the firm's latest survey, rates moved higher on better economic news and "an easing of concerns about a potential Greek debt default." Bankrate's 30-year FRM, rose from 4.71% to 4.79% this week, while the 15-year, FRM reached 3.9%, compared to 3.86% a week earlier. The 5/1-ARM also grew to 3.49%, up from 3.45% a week ago. Write to Kerri Panchuk.