Rates on fixed-rate mortgages rise

Hey Folks!

For the first time in three weeks, rates on 30-year fixed-rate mortgages rose to above 5%, according to Freddie Mac's weekly survey of conforming mortgage rates.

Rates on the 30-year fixed-rate mortgage averaged 5.05% for the week ending Feb. 25, up from 4.93% last week. They averaged 5.07% a year ago.

"Interest rates for 30-year fixed mortgages followed long-term bond yields higher and rose above 5% this week amid a mixed set of economic data reports" said Frank Nothaft, Freddie Mac vice president and chief economist, in a news release. "For instance, the January producer price index jumped well above the market consensus, but the consumer price index remained subdued and consumer confidence declined to the lowest level since April 2009, according to the Conference Board."

The 15-year fixed-rate mortgage averaged 4.40%, up from 4.33% last week. The mortgage averaged 4.68% a year ago.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.16%, up from 4.12% last week; they averaged 5.06% a year ago.

But 1-year Treasury-indexed ARMs averaged 4.15%, down from 4.23% last week and 4.81% a year ago.

To obtain the rates, the fixed-rate mortgages required payment of an average 0.7 point and the ARMs required an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.

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At your service,
Tony Grego
Senior Mortgage Banker
American Bank - Indianapolis, IN Branch

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