Freddie Mac Reports Sharp Increase in Mortgage Rates

By:: Kirk Haverkamp | April 08, 2010

Fixed-rate mortgages jumped to their highest level in eight months this past week, hitting an average of 5.21 percent on 30-year loans in today’s Freddie Mac weekly rate survey.

The rate increase followed higher bond yields in the week immediately after the Federal Reserve concluded its program of purchasing mortgage-backed securities, which had been keeping rates low. The Fed had been winding down its purchases, which totaled $1.25 trillion over 15 months, in recent months to blunt the impact of the program’s end.

The average 30-year rate rose 13 basis points, up from 5.08 percent the week before. The 30-year rate is now up a quarter of a percentage point over the past three weeks.

It’s the highest the 30-year rate has been since the week of Aug. 13, 2009, when it hit 5.29 percent. One year ago at this time, the 30-year rate averaged 4.87 percent in the wake of the Fed’s announcement that it was expanding its purchases of mortgage-backed securities.

“Once again, mortgage rates followed bond yields higher amid a positive March employment report,” said Frank Nothaft, Freddie Mac vice president and chief economist, noting factors affecting current rates. “The economy added 162,000 jobs, which was the largest monthly gain over the past three years. In addition, revisions raised the January and February figures by a combined 61,000 workers. Excluding government employees, private payrolls rose for the third consecutive month and were the strongest increase since May 2007.”

The average on 15-year fixed-rate loans was 4.52 percent, up from 4.39 percent the week before. It’s the highest that rate has been since the last week of 2009, when it averaged 4.54 percent. Contrasting with the 30-year rate, the 15-year average is slightly lower than it was one year ago this week, when it averaged 4.54 percent.

The five-year treasury indexed adjustable rate mortgage averaged 4.25 this past week, up from 4.10 percent the week before and still well down from the 4.93 percent it averaged one year ago.

All three current rates included 0.6 discount points. The Freddie Mac survey is for the week ending today, April 8.

Call For Rates

800-419-1494

Speak to a lender now.

We will match calls to our toll free number with our network of lenders.

National Rates

Loan Type	Today	+/-
30 yr fixed	3.69
15 yr fixed	3.00
5/1 ARM	2.75

Rates may contain points

Compare Rates »

Browse Mortgage Rates

Featured Guides

Browse our comprehensive guides to popular topics related to mortgage and personal finance.

Mortgage Rates Calculators

Mortgage Loan Directory and Information, LLC or Mortgageloan.com does not offer loans or mortgages. Mortgageloan.com is not a lender or a mortgage broker. Mortgageloan.com is a website that provides information about mortgages and loans and does not offer loans or mortgages directly or indirectly through representatives or agents. We do not engage in direct marketing by phone or email towards consumers. Contact our support if you are suspicious of any fraudulent activities or if you have any questions.

Mortgageloan.com is a news and information service providing editorial content and directory information in the field of mortgages and loans. Mortgageloan.com is not responsible for the accuracy of information or responsible for the accuracy of the rates, APR or loan information posted by brokers, lenders or advertisers.