Mortgage Rates On The Rise Again

Posted by Patrick Barnard on September 05, 2013 No Comments
Categories : Residential Mortgage

After dipping slightly last week, mortgage rates are on the rise again.

According to Freddie Mac's Primary Mortgage Market Survey, the average rate for a 30-year fixed rate mortgage averaged 4.57% for the week ending Sept. 5. That's an increase of 0.7 percentage points from last week, when the rate averaged 4.51%.

A year ago at this time, the average rate for a 30-year fixed-rate mortgage was 3.55%.

The average rate for a 15-year fixed-rate mortgage was 3.59%, an increase of about 0.7 percentage points, compared to the week prior, when it averaged 3.54%, according to the report. A year ago at this time, the 15-year fixed-rate mortgage averaged 2.86%.

The average rate for a 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.28%, an increase of 0.5 percentage points, up from last week's 3.24%. A year ago, the 5-year ARM averaged 2.75%.

The average rate for a 1-year Treasury-indexed ARM averaged 2.71%, an increase of 0.5 percentage points, up from last week's 2.64%. At this time last year, the 1-year ARM averaged 2.61%.

‘Mortgage rates edged up this week on signs of a stronger economic recovery,’ says Frank Nothaft, vice president and chief economist, Freddie Mac, in a statement. ‘Real GDP was revised upwards to 2.5 percent growth in the second quarter of this year. In addition, residential construction spending rose for a ninth consecutive month in July. Lastly, the manufacturing industry expanded by the fastest pace in August since June 2011.’

The report's findings are in-line with data provided by Zillow, showing that the average rate on a 30-year fixed mortgage reached 4.45% this week, up eight basis points from 4.37% the week prior.

‘Mortgages rates were essentially unchanged last week because of mixed economic data and low trading levels associated with the shortened holiday work-week,’ says Erin Lantz, director of Zillow Mortgage Marketplace. ‘Although the month-end unemployment report is always an important focus for markets, this week most attention will be focused on whether the Syrian situation intensifies, pushing investors into safer investments which would likely push mortgage rates down.’

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