30-Year Rates Return to 5% Levels
The 30-year fixed-rate mortgage inched above 5 percent this week, rising to its highest level since the last week in April 2010, and continuing its steady climb upward the last few weeks.
The 30-year rate averaged 5.05 percent this week, up from 4.81 percent the week prior, according to Freddie Mac’s weekly mortgage market survey. Last year at this time, 30-year rates averaged 4.97 percent.
Here’s how other rates fared for the week:
▪ 15-year fixed rates: averaging 4.29 percent this week, up from 4.08 percent last week.
▪ 5-year, adjustable-rate mortgage: averaging 3.92 percent this week, up slightly from 3.69 last week.
▪ 1-year, adjustable-rate mortgage: averaging 3.35 percent, up from 3.26 percent last week.
“Long-term bond yields jumped on positive economic data reports, which placed upward pressure on mortgage rates this week,” says Frank Nothaft, Freddie Mac’s chief economist.
Meanwhile, earlier this week, the Mortgage Bankers Association announced a drop in the number of people applying for a mortgage as rates continued to rise.
MBA’s overall mortgage application index dropped 5.5 percent from last week. The refinance index fell 7.7 purchase from last week, and refis made up two-thirds of the mortgage activity last week–the lowest share since May 2010.
Source: “30-Year Fixed-Rate Mortgage Rates Rise to 5.05 Percent, Highest Level Since April 2010,” Freddie Mac (Feb. 10, 2011)and “Fewer People Applied for a Mortgage Last Week as Rates Increased on Better Economic Data,” Associated Press (Feb. 9, 2011)