Mortgage rates jump higher
Significant weekly increases seen
Mortgage rates jumped higher week-over-week as average rates continue to climb uphill, Freddie Mac said in its most recent weekly mortgage report.
According to Freddie Mac’s Primary Mortgage Market Survey for the week ending January 31, all mortgage types surveyed experience weekly increases in average interest rates.
This uphill climb in mortgage rates comes after mortgage rates mostly trended downward in 2012, sitting at or near record lows for much of the year.
Fixed rates rise
In this latest weekly data, 30-year fixed mortgages rose to an average of 3.53 percent after averaging 3.42 percent the previous week.
According to Freddie Mac, this is the first time the 30-year fixed rate averaged higher than 3.50 percent since mid-September 2012. The week of November 21, 2012 brought in the lowest recorded 30-year fixed rate every – 3.31 percent.
Additionally, shorter-term 15-year fixed mortgages also increased in the latest survey – form 2.71 percent o 2.81 percent week-over-week.
One year ago at this time, 30-year fixed mortgages averaged 3.87 percent and 15-year fixed mortgages averaged 3.14 percent.
“Mortgage rates continued to trend upwards this week amid a growing economy led in part by the recovering housing market,” Frank Nothaft, vice president and chief economist at Freddie Mac, said in a statement. “For instance, new home sales totaled 367,000 in 2012, the most in three years and reflected the first annual increase in seven years.”
ARM rates rise
Average rates for 5-year adjustable-rate mortgages (ARMs) rose to 2.70 percent, up from 2.67 percent the previous week, while 1-year ARMs rose slightly on a weekly basis from 2.57 percent to 2.59 percent.
One year ago at this time, 5-year ARMs averaged 2.80 percent and 1-year ARMs averaged 2.76 percent.