Industry NewsMortgage

Mortgage rates hold for now, but expect increases

End of Fed MBS purchases will likely drive up rates

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Mortgage rates are holding steady despite last month's wind-down of a $1.25 trillion Federal Reserve program to buy up mortgage-backed securities.Rates for 30-year fixed-rate mortgages averaged 5.06 percent with an average 0.7 point for the week ending April 29, down slightly from 5.07 percent last week but up from 4.78 percent a year ago, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey.Rates on 30-year fixed loans have averaged about 5 percent over the first four months of this year, staying within a band of roughly a quarter percentage point and virtually matching 2009's annual average, said Frank Nothaft, Freddie Mac's chief economist.The 15-year fixed-rate mortgage averaged 4.39 percent with an average 0.7 point, unchanged from last week but down from 4.48 percent a year ago.The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4 percent, with an average 0.6 point, down from 4.03 percent last week and 4.8 percent a year ag...