30-Year Rates Bump Up

Interest rates on 30-year mortgages jumped this past week, a mixed picture for mortgage rates in general.

The average Interest rate on 30-year fixed-rate loans, by far the most popular type of mortgage, rose to 3.37 percent this week according to the weekly Freddie Mac rate survey, up from 3.32 percent last week. The increase of five basis points was the biggest weekly increase in fixed mortgage rates since last July.

Meanwhile, average rates on other mortgage types showed little change. The rate on 15-year fixed-rate loans edged down a single point to 2.65 percent, while initial rates on 5-year adjustable-rate mortgages (ARMs) moved up a single point, to 2.71 percent. All rates reported this week included an average of 0.7 points paid in fees and discounts.

Inflation stable, housing looking up

Frank Nothaft, Freddie Mac chief economist, said the mixed activity on mortgage rates followed reports of stable inflation and an improving market for home construction. The Bureau of Labor Statistic reported that gains in the core Consumer Price Index have held between 1.9 percent and 2.1 percent over the past five months, while the Census Bureau reported that new home construction starts just completed their strongest three-month span since September 2008.

The National Association of Homebuilders also report that its index of builder confidence rose this month to its highest reading since April 2008.

The Freddie Mac weekly rate survey is based on data from new mortgages guaranteed by Freddie Mac this week, with rates assuming an 80 percent loan-to-value ratio.

First published on MortgageLoan.com at: http://www.mortgageloan.com/30-year-rates-bump-9322