Industry News

Mortgage rates rebound this week

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Mortgage rates climbed this week after falling for five straight weeks as concerns over cheap money's effect on inflation pushed investors to put their money into stocks, Freddie Mac reported today. Rates on mortgages are closely tied to yields on Treasury bonds, and when investors shy away from bonds, that drives bond prices down and their yields up, which pushes mortgage rates higher. The average rates on 30-year fixed mortgages rose 20 basis points in the last week, growing from 5.48 percent to 5.68 percent, and the average 15-year fixed mortgage was up 22 basis points, from 4.95 percent to 5.17 percent. A year ago, the 30-year fixed averaged 6.34 percent and the 15-year averaged 6.06 percent, Freddie Mac reported. This week, points, or fees that lenders charge for loan processing expressed as a percent of the loan, averaged 0.4 on the 30- and 15-year loans. According to Freddie Mac, adjustable-rate mortgages (ARMs) also increased this week, although not as much as fixed ...