Industry News

Mortgage rates climb

Bond market senses brighter economy

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Mortgage rates were up for the third straight week on news that durable-goods orders improved in April, Freddie Mac and reported today. Freddie Mac reported that the average rate on 30-year fixed-rate mortgages climbed to 6.42 percent this week from 6.37 percent a week ago, and the rate on the 15-year fixed gained from 6.06 percent to 6.12 percent. Points, which are fees lenders charge for loan processing expressed as a percent of the loan, averaged 0.4 on the 30- and 15-year loans. Frank Nothaft, Freddie Mac vice president and chief economist, said the growth in orders to U.S. factories fueled the rate gains, and other "recent reports have indicated that economic growth outside of the housing market remains robust, with a healthy consumer sector and improving business spending." Costs for adjustable-rate mortgages (ARMs) were mixed this week, as the five-year Treasury-indexed ARM rose from 6.02 percent to 6.19 percent and the one-year ARM fell from 5.64 percent to 5.57 pe...