Mortgage rates ticked higher this week as markets began to factor in another likely rate hike from the Federal Reserve next week, according to surveys conducted by Freddie Mac and

In Freddie Mac’s survey, the 30-year fixed-rate mortgage averaged 6.12 percent, with an average 0.5 point, for the week ended today, up from last week’s average of 6.1 percent. The average for the 15-year fixed is 5.7 percent, up from last week’s average of 5.67 percent. Points on both the 30- and 15-year averaged 0.5.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 5.75 percent this week, with an average 0.6 point, unchanged from last week when it averaged 5.75 percent. The one-year Treasury-indexed ARM averaged 5.2 percent, with an average 0.6 point, up from last week when it averaged 5.18 percent.

“The miniscule rise in mortgage rates this week most likely reflects market expectations that the Federal Reserve (Fed) will once again raise rates next week,” said Frank Nothaft, Freddie Mac vice president and chief economist. “At the beginning of last week, financial markets priced in a 90 percent probability that the Fed would increase short-term rates. Today, the odds are statistically certain.

“Keep in mind, however, long-term rates are still below December’s monthly average and continue to fuel the housing market. Last week, mortgage applications for home purchases were stronger than last December’s average. Even refinancing activity remains strong, averaging around 43 percent of all mortgage applications.”

In’s survey, fixed mortgage rates reversed course this week, rising modestly. The average 30-year fixed rate mortgage increased from 6.12 percent to 6.17 percent, according to The 30-year fixed-rate mortgages in this week’s survey had an average of 0.29 discount and origination points. reported that the average 15-year fixed mortgage rate inched higher, from 5.73 percent to 5.75 percent, while the average jumbo 30-year fixed-rate increased from 6.35 percent to 6.38 percent. Adjustable-rate mortgages climbed at a similar pace, with the average 5/1 adjustable-rate mortgage rising from 5.71 percent to 5.75 percent, and the average one-year ARM moving up to 5.5 percent from 5.46 percent.

Mortgage rates moved slightly higher this week, on the back of higher Treasury yields, according to New government debt issuance to refinance maturing debt pushed yields on long-term government bonds, and fixed mortgage rates, higher. But this past week may have been the calm before the storm. In the coming week, the first estimate of fourth-quarter 2005 economic growth, Gross Domestic Product, will be released. In addition, the Federal Open Market Committee meets on Jan. 31 and is expected to raise interest rates for the 14th consecutive time. This will be Alan Greenspan’s final FOMC meeting before retiring as Fed chairman and handing over the reigns to Ben Bernanke. These events could each contribute to additional mortgage rate volatility — up or down — in the coming week.

The following is a sampling of’s average 30-year-mortgage interest rates this week in some U.S. metropolitan areas:

New York – 6.14 percent with 0.19 point

Los Angeles – 6.22 percent with 0.46 point

Chicago – 6.28 percent with 0.05 point

San Francisco – 6.27 percent with 0.19 point

Philadelphia – 6.05 percent with 0.28 point

Detroit – 6.24 percent with no points

Boston – 6.24 percent with 0.02 point

Houston – 6.09 percent with 0.65 point

Dallas – 6.15 percent with 0.55 point

Washington, D.C. – 5.99 percent with 0.54 point


What’s your opinion? Send your Letter to the Editor to

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription