Mortgage Rates Trending Higher
January 31, 2013
Mortgage rates continued to trend higher amid a growing economy led in part by the recovering housing market, according to Freddie Mac’s latest Primary Mortgage Market Survey.
This marks the first week the 30-year fixed-rate mortgage has averaged above 3.5 percent since Sept. 13 of last year. The all-time record low for the 30-year fixed was set the week of November 21, 2012, when it averaged 3.31 percent.
The 30-year fixed-rate mortgage (FRM) averaged 3.53 percent with an average .7 point for the week ending Jan. 31, up from last week when it averaged 3.42 percent. Last year at this time, the 30-year FRM averaged 3.87 percent.
"Mortgage rates continued to trend upwards this week amid a growing economy led in part by the recovering housing market,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “For instance, new home sales totaled 367,000 in 2012, the most in three years and reflected the first annual increase in seven years. Pending home sales in 2012 averaged its highest reading since 2006. And the S&P/Case-Shiller 20-city composite house price index rose 5.5 percent over the 12-months ending in November 2012, the largest annual growth since August 2006. All of these factors helped residential fixed investment to add nearly 0.4 percentage points to real GDP growth in the fourth quarter alone."
Meanwhile, the15-year FRM this week averaged 2.81 percent with an average .7 point, up from last week when it averaged 2.71 percent. A year ago at this time, the 15-year FRM averaged 3.14 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.7 percent this week with an average 0.6 point, up from last week when it averaged 2.67 percent. A year ago, the 5-year ARM averaged 2.8 percent.
The 1-year Treasury-indexed ARM averaged 2.59 percent this week with an average 0.5 point, up from last week when it averaged 2.57 percent. At this time last year, the 1-year ARM averaged 2.76 percent.