Mortgage rates rise last weekby Tim Manni
Mortgage rates have been rising for the last few weeks, and that upward trend continued last week. While improving economic conditions are providing the foundation for firming rates, last week’s unemployment report did keep mortgage rates from rising even more than they did.
In addition to improving economic conditions was a rising 10-year Treasury yield which also helped push rates upward:
The 10-year Treasury, a benchmark for fixed-rate mortgages, crested above 3% [last] week, and has risen by nearly a half-percentage point from November’s daily low. In fact, the yield is the highest since July, and mortgage rates are following right along. Some dreams of low-rate refinancing have come to an end, at least for the moment.
How much did mortgage rates rise last week?
HSH.com’s overall mortgage tracker — our weekly Fixed-Rate Mortgage Indicator (FRMI) — found that the average rate for 30-year fixed-rate mortgages moved eight basis points higher (.08%), ending HSH.com’s national survey at 4.86%, its highest value since early August. For low-down payment homebuyers or refinancers with only a slight equity position, FHA-backed loans are available at an average rate of 4.52%, while the overall average rate for 5/1 Hybrid ARMs rose three basis points to 3.66% for the week. HSH.com’s public mortgage interest rate data series include rates for conforming, jumbo, and most recently the GSE’s “high-limit” conforming products and so covers much of the mortgage-borrowing public.
While inconsistent economic reports have limited recovery and rising interest rates to some degree, every improving report (or at least non-declining report), “makes it more likely that the [economic] expansion will remain durable and less likely to backslide into recession.”
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