Mortgage rates ticked higher this week after approaching all-time lows, mortgage financier Freddie Mac said today.
The benchmark 30-year fixed mortgage increased three basis points to 5.07 percent during the week ending February 26, but still sits far below its year ago average of 6.24 percent.
“Mortgage rates were little changed this week amid mixed data reports of a slowing economy,” said Freddie Mac chief economist Frank Nothaft, in a statement.
“Both the core producer price and consumer price indexes ticked up in January, higher than the market consensus, while consumer confidence in February fell to the lowest reading since records began in January 1967.”
“At the same time, lower house prices and affordable mortgage rates have yet to spur housing demand,” he said.
The 15-year fixed averaged 4.68 percent, unchanged from last week, and much better than the 5.72 percent rate seen this time last year.
The five-year ARM increased two basis points to 5.06 percent, beating its year-ago average of 5.43 percent, while the one-year ARM inched up a single basis point to 4.81 percent, slightly below the 5.11 percent seen last year.
These interest rates are good for conforming mortgages, which thanks to recent legislation go as high as $729,750 in high-cost areas.
Jumbo loans continue to price much higher, with 30-year loans averaging around 6.5 percent, though they too have improved in recent months.
(photo: arthurtsaophotography)
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