Industry News

Mortgage rates climb this week

Adjustable loans may become more popular, survey finds

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Long-term mortgage rates rose sharply this week, Freddie Mac reported today, as inflation ran high and investors eyed mortgage-back securities in light of higher loan limits. The average rate on 30-year fixed-rate mortgages shot up by 32 basis points in the last week, rising from 5.72 percent to 6.04 percent, and the average 15-year fixed mortgage was up 39 basis points, from 5.25 percent to 5.64 percent. Points, or fees that lenders charge for loan processing expressed as a percent of the loan, averaged 0.6 and 0.5, respectively, on the 30- and 15-year loans. "After trending up in the past two weeks, long-term fixed mortgage rates are back up to nearly where they were at the beginning of the year," said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement. "In contrast, average rates on adjustable-rate mortgages (ARMs) are about 0.5 percentage points below levels of the first week of this year. As the spread between long-term fixed-rates and adjustable-rates ...