Mortgage rates jump as economy improves
Categories: Interest Rates | Tags: None
This week’s jump in mortgage rates may mean it’s time for home buyers to get off the fence before they miss out on what has been a season of historically low interest rates. Long-term interest rates rose to the highest level since April 2010 as positive economic reports fueled concern about inflation.
Mortgage giant Freddie Mac reported today that the 30-year fixed-rate mortgage averaged 5.05 percent, up from last week’s average of 4.81 percent and a nearly quarter-point jump. Mortgage rates tend to track 10-year U.S. Treasury notes, and this week those yields rose on positive productivity, unemployment and service industry news, said Frank Nothaft, Freddie Mac vice president and chief economist.
The 15-year fixed-rate mortgage also jumped. This week it averaged 4.29 percent, up from last week’s average of 4.08 percent. Similarly, the five-year adjustable rate mortgage averaged 3.92 percent this week, up from 3.69 percent. Also following suit was the one-year ARM which rose from 3.26 percent to 3.35 percent.
February 10, 2011 | Share: