Long-term mortgage rates rose sharply this week, Freddie Mac reported today, as inflation ran high and investors eyed mortgage-back securities in light of higher loan limits.

The average rate on 30-year fixed-rate mortgages shot up by 32 basis points in the last week, rising from 5.72 percent to 6.04 percent, and the average 15-year fixed mortgage was up 39 basis points, from 5.25 percent to 5.64 percent.

Points, or fees that lenders charge for loan processing expressed as a percent of the loan, averaged 0.6 and 0.5, respectively, on the 30- and 15-year loans.

“After trending up in the past two weeks, long-term fixed mortgage rates are back up to nearly where they were at the beginning of the year,” said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement. “In contrast, average rates on adjustable-rate mortgages (ARMs) are about 0.5 percentage points below levels of the first week of this year. As the spread between long-term fixed-rates and adjustable-rates widens, it’s possible we could see a slight increase in the popularity of adjustable-rate mortgages.”

Freddie Mac reported that the five-year Treasury-indexed hybrid ARM gained to an average 5.37 percent from last week’s 5.19 percent, while the average one-year ARM dipped from 5 percent to 4.98 percent. Points on the 5- and one-year loans averaged 0.5 and 0.6, respectively.

According to Bankrate.com, which also conducts a weekly mortgage survey, “Inflation continues to percolate, as evidenced by $100-per-barrel oil and yet another troubling uptick in the Consumer Price Index. But mortgage rates have increased much more than Treasury yields as investors reassess mortgage-backed securities in light of higher conforming loan limits to be announced in March.”

Show Comments Hide Comments

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.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
EXTENDED: We're giving you one extra day to scoop your ICNY ticket. Prices go up at midnight. Don't wait.Register now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
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