Industry News

Mortgage rates rise on Fed speculation

Improving economy may push rates up sooner than expected

Mortgage rates this week inched slightly higher on news the economy may be on a swift rebound, according to surveys conducted by mortgage buyer Freddie Mac and Bankrate. In Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 5.68 percent for the week ended today, up slightly from 5.64 percent last week. The average for the 15-year fixed-rate mortgage this week is 4.97 percent, up very slightly from last week's average of 4.95 percent. Points on both the 30- and 15-year averaged 0.7. One-year Treasury-indexed adjustable-rate mortgages averaged 3.59 percent this week, with an average 0.6 point, up very slightly from 3.56 percent last week. "Mortgage rates were basically unchanged leading up to the FOMC's announcement that opened the door to the possibility the Fed would raise rates sooner than expected," said Frank Nothaft, Freddie Mac's chief economist. "Following the policy statement, bond yields shot up, taking mortgage rates with them, and raising the prospe...