Mortgage rates rose this week thanks to better than expected economic data, mortgage financier Freddie Mac reported today.
The benchmark 30-year fixed climbed to 5.25 percent during the week ending February 5, up from 5.10 percent a week earlier and 5.67 percent a year ago.
The 15-year fixed averaged 4.92 percent, up from 4.90 percent a week ago, but below its year-ago average of 5.03 percent.
“Interest rates for fixed-rate mortgages rose this week amid economic reports that were somewhat better than consensus forecasts had anticipated,” said Frank Nothaft, Freddie Mac chief economist, said in a statement.
“The economy slowed by 3.8% in the fourth quarter of 2008, less than the market consensus, with inflationary pressures held at bay. Meanwhile, personal incomes fell by only half as much as some market forecasters predicted.”
Adjustable-rate mortgages displayed little movement, with the five-year down a single basis point to 5.26 percent and the one-year up two basis points to 4.92 percent.
A year ago, the five-year averaged 5.21 percent and the one-year averaged 5.03 percent.
These rates are good for conforming loan amounts at 80 percent loan-to-value. Jumbo loans continue to price much higher, with a 30-year fixed hovering around the seven percent range.
The recent rise in interest rates is troubling, considering the effort made by the government to keep them low, but new legislation may include buy downs that push rates significantly below market prices.
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