Industry News

Rates jump on adjustable-rate mortgages

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Adjustable-rate mortgages increased considerably this week on speculation the Federal Reserve will raise interest rates by the end of the month, according to surveys conducted by mortgage buyer Freddie Mac and Bankrate. Long-term mortgage rates remained stable. In Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 6.3 percent for the week ended today, up slightly from last week when it averaged 6.28 percent. The average for the 15-year fixed-rate mortgage this week is 5.67 percent, up a little from last week when it averaged 5.63 percent. Points on both the 30- and 15-year averaged 0.7. One-year Treasury-indexed adjustable-rate mortgages averaged 4.14 percent this week, with an average 0.7 point, up considerably from last week when it averaged 3.98 percent. "The 1-year ARM responds more directly to movements by the Federal Reserve Board and market chatter has it that the Fed will not only raise rates at the end of this month, but may do so consecutively throughout ...