Mortgage rates move higher with Treasury bond yields
Mortgage rates moved higher this past week as Treasury bond yields grew and a national home price index reported some gains in home prices. But data from two separate agencies showed mortgage rates still hovering at the low-end of the spectrum as pessimistic economic data dominated the marketplace. The 5-year, adjustable-rate mortgage fell to 3.07% from 3.08%, hitting a new record low, Freddie Mac said in its Primary Mortgage Market Survey. The 30-year, fixed-rate mortgage rose to 4.22%, up from 4.15% last week and down from 4.36% a year earlier. The 15-year, FRM hit 3.44%, up from 3.36% last week and 3.86% a year earlier. The one-year Treasury-indexed ARM hit 2.93%, up from 2.86% last week and 3.52% last year. Frank Nothaft, vice president and chief economist of Freddie Mac, says a few positive reports on housing helped buoy the rates. "The Federal Housing Finance Agency national house price index rose for the third straight month in June bolstered by a 3.3% gain in the East North Central Census Division. In addition, the Mortgage Bankers Association reported that the serious delinquency rate (90 days or more plus foreclosures) on mortgages outstanding fell for the sixth consecutive quarter at the end of June to 7.85%," Nothaft said. Bankrate, which also releases a weekly report on mortgage rates, said fixed-rate mortgages fell even further this past week, with the 30-year FRM hitting a record low of 4.41%. Bankrate blames uncertain economic conditions for mortgage rates anemic growth. According to Bankrate's data, the 30-year FRM currently sits at 4.41%, down from 4.45% last week, while the 15-year FRM rose to 3.63%, up from 3.58% last week. In addition, the 5/1 ARM fell from 3.15% to 3.12% in the most recent survey. Write to: Kerri Panchuk.