Mortgage rates were up again this week, Freddie Mac reported today, as concerns about inflation and continued turmoil in credit markets stoked the fire under long-term interest rates.
The average rate on 30-year fixed-rate mortgages jumped to 6.24 percent this week from 6.04 percent a week ago, and the average 15-year fixed mortgage gained from 5.64 percent to 5.72 percent.
Points, or fees that lenders charge for loan processing expressed as a percent of the loan, averaged 0.5 on the 30- and 15-year loans.
“Long-term fixed mortgage rates trended up for a third week, bringing rates on 30-year and 15-year fixed-rate mortgages back to their levels of last November,” Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement. “Refinancing activities, which had surged to a 12-month high in January, according to Freddie Mac’s monthly refi share report, are likely to ebb following this recent rise in rates.”
Indeed, the Mortgage Bankers Association reported Wednesday a 30.4 percent drop-off in refinancings last week.
Freddie Mac reported that average rates on five-year Treasury-indexed adjustable-rate mortgages (ARMs) rose to 5.43 percent this week from 5.37 percent last week, and average rates on one-year Treasury-indexed ARMs jumped from 4.98 percent to 5.11 percent. Points on the 5- and one-year loans averaged 0.4 and 0.7, respectively.