The Truth About Mortgage.com

Mortgage rates rose for the first time after five straight weeks of declines after the Fed cut rates one-and-a-half points, Freddie Mac reported today.

“Reinforcing the Fed’s resolution to thwart a recession, the Federal Open Market Committee announced another cut in the target federal funds rate by half of a percentage point in their most recent scheduled meeting,” said Freddie Mac chief economist Frank Nothaft in statement Thursday.

“This came on the heels of the Fed’s rate cut of three-quarters of a percentage point the previous week, and the shaping-up of a fiscal stimulus package by Congress and the White House. This cut was in line with market expectations.” he added.

After two Fed cut rates in a week and the potential for more in the near future, lingering inflationary concerns drove rates higher.

According to Freddie’s latest weekly survey which covers the week ending January 31, the benchmark 30-year fixed mortgage averaged 5.68 percent, up from 5.48 percent last week.

The 15-year fixed mortgage climbed back above five percent to 5.17 percent, up from 4.96 percent last week.

Adjustable-rate mortgages also moved higher, with the five-year ARM rising to 5.32 percent from 5.13 percent last week, and the one-year Treasury ARM moving up to 5.05 percent from 4.99 percent a week ago.

Despite the slight increase in rates, they’re still considerably lower than levels a year ago.

At this time last year, the 30-year averaged 6.34 percent, the 15-year 6.06 percent, the 5-year 6.04 percent, and the one-year 5.54 percent.

To that extent, refinancing is still favorable so long as you’ve got the equity in your home and the documentation to get approved.