Mortgage rates climbed higher for the second week running, according to the latest survey from mortgage financier Freddie Mac.
The benchmark 30-year fixed averaged 5.15 percent during the week ending March 5, up from 5.07 last week, but below the 6.03 percent seen a year ago.
“Mortgage rates followed bond yields higher this week following reports of record continuing jobless claims and a downward revision in economic growth in the fourth quarter of 2008,” said Frank Nothaft, Freddie Mac vice president and chief economist.
“Real Gross Domestic Product was revised from a 3.8 percent decline to a 6.2 percent drop in the fourth quarter mostly led by a 4.3 percent fall in consumer spending, which was the largest decrease since the second quarter of 1980.
The 15-year fixed averaged 4.72 percent, up from 4.68 percent a week ago, but still slightly below the 4.94 percent rate seen this time last year.
Adjustable-rate mortgages also inched up, with the five-year hybrid climbing two basis points to 5.08 percent and the one-year ARM rising five basis points to 4.86 percent.
A year ago, the five-year averaged 5.34 percent and the one-year stood at 4.94 percent.
Interest rates continue to sit at historical lows, but it doesn’t seem to be doing much to stimulate flagging home sales and sagging property values.
“The housing market continues to slow as well. New home sales fell 10.2 percent in January to the slowest pace since records began in January 1963 while pending existing home sales slowed by 7.7 percent, the weakest since the series began in January 2001,” added Nothaft.
“More recently the Federal Reserve noted in its March 4th regional economic report that residential real estate markets remained in the doldrums in most areas, with only scattered, very tentative signs of stabilization.”
Freddie Mac’s survey applies to conforming loans with a LTV of 80 percent. Jumbo loans continue to price much higher than conforming loans, with 30-year fixed loans averaging around 6.50 percent.
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