Fixed Mortgage Rates Soar to Highest Level in a Year

Interest rates for fixed rate mortgages soared to their highest levels in a year this week according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending May 30th, 2013.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages increased for a fourth consecutive week with the 30-year fixed rate mortgage jumping 22 basis points to 3.81 percent with an average of 0.8 points after rising by eight basis points last week. Mortgage rates for the 30-year fixed mortgage have been under four percent for 62 consecutive weeks and have increased by 46 basis points over the last four weeks alone. A year ago, the 30-year fixed rate mortgage averaged 3.75 percent.

Average 30-year rates were generally the lowest in the Western and Southeastern portions of the United States where mortgage rates averaged 3.79 percent while the highest rates were reported in the Southwestern, North Central and Northeastern areas of the country where interest rates averaged 3.83 percent.

The average rate for a 15-year fixed mortgage also increased this week climbing to 2.98 percent with an average of 0.7 points from an average of 2.77 percent last week. Mortgage rates for the 15-year fixed mortgage have been under three percent for 53 consecutive weeks. At this time last year, the 15-year fixed rate mortgage averaged 2.97 percent.

Adjustable Rate Mortgages:

Interest rates for adjustable-rate mortgages were mixed this week with the 5-year Treasury-indexed hybrid ARM rising slightly to 2.65 percent, with an average of 0.5 points, up from last week’s average of 2.63 percent. The 5-year adjustable rate mortgage averaged 2.84 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage averaged 2.54 percent with an average of 0.5 points, down from last week’s average of 2.55 percent. A year ago, the 1-year adjustable rate mortgage averaged 2.75 percent.

Freddie Mac PMMS 05-31-13

Tags: 15-year fixed, 30-year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates, 5-year hybrid, 1-year treasury

Source:
Freddie Mac

Reported by Shirley Allen