Industry News

Mortgage rates soar on economic reports

30-year fixed reaches 5.89%

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Mortgage rates climbed to fourth-month highs this week in response to positive economic news, according to surveys conducted by mortgage giant Freddie Mac and Bankrate. In Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 5.89 percent, with an average 0.6 point, for the week ended today, up from last week when it averaged 5.79 percent. The average for the 15-year fixed-rate mortgage this week is 5.23 percent, with an average 0.6 point, up from last week when it averaged 5.12 percent. Rates on one-year adjustable-rate mortgage averaged 3.69 percent, with an average 0.6 point, up from 3.65 percent last week. "With economic news continuing to point to a growing economy, the financial markets are beginning to think about the likelihood of inflation again," said Frank Nothaft, Freddie Mac chief economist. "Although economic indicators thus far suggest March was an outstanding month, we still have to see how April will fare, especially with higher–although st...