Freddie Mac: Mortgage Rates Rise Sharply This Week

(LoanRateUpdate)

Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®) which shows long- and short-term rates rising sharply this week. Mortgage rates are out their highest level since April 2010 and are attributed to positive economic news that pushed long-term bond yields higher.

• 30-year fixed-rate mortgage (FRM) averaged 5.05 percent with an average 0.7 point for the week ending February 10, 2011, up from last week when it averaged 4.81 percent. Last year at this time, the 30-year FRM averaged 4.97 percent.
• 15-year FRM this week averaged 4.29 percent with an average 0.7 point, up from last week when it averaged 4.08 percent. A year ago at this time, the 15-year FRM averaged 4.34 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.92 percent this week, with an average 0.6 point, up from last week when it averaged 3.69 percent. A year ago, the 5-year ARM averaged 4.19 percent.
• 1-year Treasury-indexed ARM averaged 3.35 percent this week with an average 0.6 point, up from last week when it averaged 3.26 percent. At this time last year, the 1-year ARM averaged 4.33 percent.

Frank Nothaft, vice president and chief economist, Freddie Mac, stated, "Long-term bond yields jumped on positive economic data reports, which placed upward pressure on mortgage rates this week. For all of 2010, non-farm productivity rose 3.6 percent, the most since 2002, while January’s unemployment rate unexpectedly fell from 9.4 percent to 9.0 percent. Moreover, the service industry expanded in January at the fastest pace since August 2005.As a result, interest rates on a 30-year fixed-rate mortgage rose to the highest level since the last week in April 2010."

30-Year Fixed Rate Mortgages
	US	NE	SE	NC	SW	W
Average	5.05	5.07	4.99	5.09	5.06	5.02
Fees & Points	0.7	0.7	0.9	0.6	0.6	0.8

15-Year Fixed Rate Mortgages
	US	NE	SE	NC	SW	W
Average	4.29	4.30	4.28	4.32	4.35	4.26
Fees & Points	0.7	0.7	0.9	0.6	0.6	0.7

5/1-Year Adjustable Rate Mortgages
	US	NE	SE	NC	SW	W
Average	3.92	3.98	3.72	4.20	3.89	3.80
Fees & Points	0.6	0.6	0.8	0.4	0.6	0.7
Margin	2.75	2.76	2.75	2.73	2.79	2.73

1-Year Adjustable Rate Mortgages
	US	NE	SE	NC	SW	W
Average	3.35	3.54	3.07	3.64	3.48	3.06
Fees & Points	0.6	0.6	0.7	0.3	0.7	0.6
Margin	2.76	2.79	2.75	2.72	2.80	2.75

The National Mortgage Rate Snapshot
	One Year Ago				One Week Ago
	30-YR	15-YR	5/1-YR	1-YR ARM	30-YR	15-YR	5/1-YR	1-YR ARM
Average	4.97	4.34	4.19	4.33	4.81	4.08	3.69	3.26
Fees & Points	0.7	0.6	0.6	0.6	0.8	0.8	0.7	0.6
Margin	N/A	N/A	2.73	2.76	N/A	N/A	2.74	2.76

Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates