Most mortgage interest
rates rose during the week ended February 25 according to data released on
Thursday by Freddie Mac from its Primary Mortgage Market Survey.
The 30-year fixed-rate
mortgage (FRM) averaged 5.05 percent during the week, up from 4.93 the previous
week. Fees and points were unchanged at
0.7 point. The 15-year FRM was up 7
basis points to 4.40 percent and fees and points increased from 0.6 to 0.7
point.
Adjustable rate mortgages
(ARMs) were mixed with the five-year Treasury-indexed hybrid ARM up from 4.12
percent with 0.5 point to 4.16 percent with 0.6 point. The one-year Treasury-indexed hybrid ARM,
however, declined from 4.23 percent to 4.15 percent. Average fees and points for 1-year ARMS remained
at 0.6 point.
Frank Nothaft, Freddie Mac
vice president and chief economist said, in a statement accompanying the rate
release, "Interest rates for 30-year fixed mortgages followed long-term bond
yields higher and rose above 5 percent this week amid a mixed set of economic
data reports. 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.
"There were also varying
reports as to the current state of the housing market. The S&P/Case-Shiller®
national home price index rose for the third consecutive quarter in the fourth
quarter, albeit at a slower rate, and the 20-city composite index showed an
increase in December 2009 for the seventh month in a row; six metropolitan
areas experienced positive year-over-year growth, compared to four in November.
New home sales, however, unexpectedly slowed in January to the smallest pace
since records began in 1963, and the supply of homes at the current sales rate
rose to 9.1 months, the most since May 2009."
Fannie Mae's report on
average weekly yields for the week ended February 19 showed the same pattern as
that reported by Freddie Mac; long term rates were up while ARMs drifted lower.
Fannie Mae's yield on
conventional 30-year FRMs averaged 4.82 percent for the week compared to 4.71 a week earlier
while the 15-year FRM increased from 4.04 percent to 4.11 percent. FHA and VA guaranteed 30-year mortgages
increased 10 basis points to 5.49 percent.
The one-year ARM averaged 2.46 percent compared to 2.47 percent a week
earlier.
All Fannie Mae yields are
quoted on a net basis with no servicing fees included.